CanaFarma Hemp Products Corp. (CSE:CNFA) has said it intends to complete a non-brokered private placement to raise approximately C$5 million through the issuance of approximately 32,051,282 units at an issue price of C$0.156 per unit.
CanaFarma said it intends to use the proceeds to provide a working capital loan to Vertical Wellness, a company with which it recently entered into an MOU to acquire, and to fund other potential acquisitions, and meet general working capital needs.
Each unit in the placement will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each whole warrant will be exercisable into one common share for a period of 36 months following the closing of the placement at an exercise price of C$0.20 per warrant share.
READ: CanaFarma signs MOU to acquire branded health company Vertical Wellness
All securities to be issued under the placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Subject to the satisfaction of customary closing conditions, including completion of customary filings with the Canadian Securities Exchange, the first tranche of the placement is expected to close on or before August 19, 2021.
The securities to be issued under the placement have not been and will not be registered under the US Securities Act of 1933, as amended, or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States absent registration or an applicable exemption from the registration requirements.
CanaFarma Hemp Products is a full-service company operating in the hemp industry offering a full range of hemp-related products and services to the consumer wellness market. These products and services include growing top-quality hemp, providing hemp-processing services, and offering hemp-based products to consumers utilizing a well-established direct-to-consumer marketing approach.
Contact the author at jon.hopkins@proactiveinvestors.com