Hill Street Beverage Company Inc.(CVE:BEER) said it has closed its previously announced non-brokered private placement of units at a price of $0.08 each, for aggregate gross proceeds of $3,403,883.52, which was oversubscribed by almost $1,000,000.
"We are extremely pleased with the response to our offering and the quality of investors from both Canada and the US, that are supporting our global growth agenda," commented Lori Senecal, Hill Street board member and interim co-CEO
"This capital is important for our next phase of corporate development as we continue to build out our programs to monetize the patent usage rights we acquired to DehydraTECH fast-acting emulsion technology," added Craig Binkley, the company's other interim co-CEO.
READ: Hill Street Beverage Company gets set to launch its first cannabis-infused beverage in Ontario
Each unit in the offering was comprised of one common share and one warrant, with each warrant entitling the holder to purchase one common share of the company at a price of $0.11 per share for a period of three years from closing. All the securities issued in connection with the offering will be subject to a hold period of four months and one day from the date of closing.
In connection with the offering, the company paid finders fees of $8,320 and issued 52,000 finder's warrants to Echelon Wealth Partners. Each finder warrant will entitle the holder to purchase one common share of the company at a price of $0.08 for two years from the date of closing. Echelon is arm's length to the company.
The company also noted that the following insiders participated in the offering: $20,000 by Senecal; $20,000 by June Nicholson, Hill's Street chief operating officer; and $90,000 by Raymond Bisaillon, a Hill Street board member.
Hill Street Beverage is a leading and award-winning company focused on alcohol-free beer, wine, and adult-format beverages. Its brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world.
Hill Avenue Cannabis, the company's wholly-owned subsidiary, will produce and sell Cannabis-infused adult beverages and other Cannabis products with expected distribution at licensed outlets in 2021, as well as commercializing Lexaria's patented DehydraTECH fast-acting platform technology.
Contact the author at jon.hopkins@proactiveinvestors.com