HENDERSON, NV, July 01, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Grove, Inc. (NASDAQ:GRVI) ("Grove" or the "Company"), today announced that it has completed a strategic debt investment to fund future growth.

Under the terms of the loan, the Company, at the initial closing, drew $7.5 million of the $15 million available. The Company could draw down against the remainder should it be needed to fund further profitable acquisitions in the future. The loan amortizes over 30 months and bears interest at a rate of 13% per annum, 8.5% payable in cash on the first day of each month hereafter and 3.5% PIK payable each month in arrears. There are fees, financial covenants, and prepayment fees associated with the loan, as well as a security agreement and other related agreements. As part of the terms of the loan, Grove has also issued an aggregate of 56,250 common stock purchase warrants, which are exercisable @ $4.44 per share. Amounts outstanding under the loan are convertible at the investor’s option into Company common stock at a fixed price of $7.06 per share.

Concurrent with the initial closing of the debt facility, the Company also received a $1.5 million loan from CEO Allan Marshall under similar terms, with the same amortization schedule, fees, and interest, though no conversion feature.

CEO Allan Marshall stated, “Since our IPO last June, we have driven growth and increased profitability. Our commitment to our shareholders is evident in this type of financing and management estimates the company’s current cash flow should be able to support this transaction. The capital available through this financing will be a key component of growth in our Upexi brand aggregation strategy. I am excited to commit more capital alongside our investors and look forward to another great year of growth and the opportunities that may come.”

About Grove, Inc.

Grove, Inc. is an innovator in aggregation, accelerating Amazon and eCommerce businesses by combining consumer data and vertical integration to scale brands in multiple industries, while lowering costs with a growing distribution network. Through strategic acquisitions, Grove continues to expand into numerous consumer markets, and utilizes its in-house, SaaS programmatic ad technology to help achieve a lower cost per acquisition and accumulate consumer data for increased cross-selling between its growing portfolio of brands.

Company Contact
Andrew Norstrud
Email: investorinfo@cbd.io
Phone: (702) 332-5591

Investor Relations Contact
TraDigital IR
John McNamara
Email: john@tradigitalir.com
Phone: (917) 658-2602