TORONTO, Ontario – TheNewswire - August 2, 2024 - Hill Incorporated, formerly Hill Street Beverage Company Inc. (TSXV: HILL) ("Hill” or the "Company") is pleased to announce that it has entered into a loan agreement (the “Loan Agreement”) with Holdco (St. Catharines) Ltd. (“Holdco”), its largest shareholder, for an unsecured loan of CDN $250,000 (the “Loan”) to its subsidiary Hill Street Marketing Inc.

 

The Loan will bear interest at 10% per annum and the Company will pay a commitment fee of $7,500 to Holdco upon the advance of funds under the Loan.  The Loan will mature on the earlier of one-year from the advance date or upon certain events occurring as set out in the Loan Agreement.  The proceeds of the Loan will be used for the purchase of Vin(Zero) alcohol-free wine inventory and other general working capital related to the Company’s Vin(Zero) business.

 

The Company’s Vin(Zero) business requires significant periodic investments in finished goods production orders.  Despite optimizing our business model to dramatically reduce the order-to-cash cycle and the level of working capital on this business, we still have to pay our supplier in advance for inventory production.

 

As we announced on June 27, 2024, we forgave certain licensing fees owing from our DehydraTECH licensee 1906 that we were carrying as accounts receivable, as part of a restructured deal on licensing fees.  Because of this reduction in our accounts receivable, we entered into the Loan to fund the short-term working capital needs of our Vin(Zero) business.

 

The Loan is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Hill is relying on an exemption from the formal valuation and minority approval provisions of MI 61-101 pursuant to sections 5.5(a) and 5.7(f) thereof, respectively.

 

About Hill Incorporated (TSXV: HILL)

 

Hill Incorporated is a progressive bioscience implementation company that is dedicated to building pathways to better and healthier living by leveraging our deep CPG expertise to commercialize leading-edge technologies to craft superior cannabis solutions and non-alcoholic beverage products globally. Our Hill Avenue Cannabis business unit is pioneering the space where craft consumer products meet bioscience by combining our deep CPG commercialization expertise with our rights to use Lexaria Bioscience Corp’s ground-breaking DehydraTECH patent portfolio for product development, licensing and B2B and B2C sales of cannabis ingredients or products on a global scale. Our Hill Street Beverages business unit represents the Company’s legacy alcohol-free consumer beverage marketing and distribution business.

  

For more information on our business activities visit www.hillincorporated.com, to learn more about our DehydraTECH cannabis biodelivery technology, go to www.dehydratech-thc.com, or to check out Hill Street Beverage’s award-winning alcohol-free wine line-up and order product to be delivered straight to your home, go to www.hillstreetbeverages.com.

  

If you wish to sign up for the Hill Incorporated mailing list, click HERE.

 

For more information, contact:

Craig Binkley, Chief Executive Officer

Email: craig@hillincorporated.com

Phone: 604-609-6154

 

FORWARD-LOOKING STATEMENTS

Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.