New Leaf Sells Shares, Settles Debt

Tea maker New Leaf Brands announced that it was converting debt to shares in the company as part of a series of capital raising moves.
In addition to the conversion of debt to equity, New Leaf also announced that it had reached a definitive agreement with investors to sell $1,215,000 in preferred stock and additional warrants for the purchase of common stock.
The easing of New Leaf’s debt load and the infusion of operating capital will help the company grow, according to CEO Erik Skae.

“The private placement and related debt conversions effects a complete restructuring of the company’s balance sheet and strongly positions the company for the continued growth of our business,” Skae said in the announcement.

The deal is scheduled to close on Friday.

The full text of the release can be found here.