This information was provided by prnewswire
Send your Press Release here.
VANCOUVER, Jan. 10, 2019 /CNW/ – CANNAMERICA BRANDS CORP. (“CannAmerica” or the “Company”) (CSE: CANA) (OTCQB: CNNXF) announces that it has repriced its brokered private placement previously announced on November 20, 2018 (the “Offering“) to now consist of up to 16,666,666 units of the Company (“Units“) at an issue price of $0.60 per Unit (the “Offering Price“) for gross proceeds of up to $10,000,000.
Each Unit consists of one common share of the Company and one common share purchase warrant (a “Warrant“). Each Warrant will be exercisable to acquire one common share of the Company for a period of 24 months from the date of issuance of such Warrants at an exercise price of C$0.80 per share, subject to early expiration in certain circumstances.
The Company is also pleased to announce the closing of the first tranche of the Offering (the “First Tranche“), pursuant to which the Company has issued 2,662,326 Units for gross proceeds of $1,597,397. In connection with the closing of the First Tranche, the Company has issued to Canaccord Genuity Corp., Gravitas Securities Inc., PI Financial Corp., Richardson GMP Ltd. and INFOR Financial Inc. (together, the “Agents“) an aggregate of: (i) $87,497 in cash; (ii) 145,827 warrants (the “Broker Warrants“); and (iii) a corporate finance fee equal to 106,493 Units.
Each Broker Warrant will be exercisable at any time prior to the date that is 24 months from the date of issue to acquire one Unit (a “Broker Unit“) at the Offering Price. Each Broker Unit will consist of one common share in the capital of the Company and one common share purchase warrant (a “Broker Unit Warrant“). Each Broker Unit Warrant will be exercisable to acquire one common share in the capital of the Company for a period of 24 months following the date of issue at an exercise price of $0.80 per share, subject to adjustment in certain events.
The Company intends to use the net proceeds from the closing of the First Tranche for capital expenditures for the launch of a major brand acquisition strategy to expand the Company’s portfolio of brands as well as working capital and general corporate purposes.
The Offering will be completed in multiple future tranches, with the final tranche expected to close on a date as mutually agreed upon by the Company and Agents. All securities issued pursuant to the Offering, including the securities issued upon the closing of the First Tranche, will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Leave a Reply