LEEF Brands Announces Full Early Conversion of ~US$10.5 Million of USD Convertible Debentures

Executive Summary

• LEEF Brands completed the full early conversion of its 11% secured convertible debentures (due Sept 9 2027), converting approximately US$10.59 M of principal and accrued interest into 59,209,048 units at CAD 0.25 per unit.
• The conversion eliminates virtually all long‑term debenture debt, leaving only two real‑estate notes ($4.2 M @ 4% and $7 M @ 0%).
• CEO Micah Anderson also converted his own debentures and an additional $982,080 of notes payable, underscoring insider confidence; the company reports 24% YoY revenue growth and doubled gross margins in Q3.

Key Details

• Conversion Terms: Units consist of one common share plus one warrant exercisable at CAD 0.30 for 36 months; conversion price set at CAD 0.25 per unit.
• Units Issued: Approximately 59,209,048 units issued to debenture holders upon early settlement.
• Outstanding Debt Eliminated: Full principal and accrued interest of US$10,588,928 converted; remaining debt limited to two real‑estate notes ($4.2 M @ 4% interest; $7 M @ 0%).
• Insider Participation: CEO Micah Anderson settled his full debenture under the same terms and additionally converted $982,080 of notes payable at CAD 0.25 per unit.
• Financial Impact: Strengthens balance sheet by removing long‑term convertible debt; improves financial flexibility for scaling operations in California and New York.
• Operational Highlights: Q3 revenue grew 24% YoY; gross margins doubled year‑over‑year, driven by cultivation improvements and new high‑margin revenue stream from New York operations.
• Strategic Rationale: Enables expansion of Salisbury Canyon Ranch (California) and New York processing facilities; positions LEEF for further growth initiatives.

Notable Quotes

“We are pleased to complete this full conversion, which immediately strengthens our capital structure and enhances our financial flexibility heading into 2026,” – Micah Anderson, CEO, LEEF Brands.

“With this conversion complete, the Company enters 2026 with a simplified balance sheet, improved margins from cultivation, and a new, high‑margin revenue stream from our New York operations.” – Kevin Wilson, CFO, LEEF Brands.