CanaFarma Hemp Products Corp (CSE:CNFA, FRA:4K9). said it has closed the first tranche of its previously announced non-brokered private placement with the issuance of 5,736,842 units at an issue price of C$0.095 each for aggregate proceeds of C$545,000.
Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share for a period of 36 months at an exercise price of C$0.125 per warrant share.
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In accordance with applicable securities laws, all of the common shares and warrants issued under the first tranche closing are subject to a four-month-and-one-day hold period, which will expire on December 7, 2021.
As previously announced on July 27, 2021, the company is offering up to C$5 million of units. The private placement is expected to be completed in multiple tranches. The company said it continues to collect subscription materials and funds and expects to close one or more additional tranches prior to August 19, 2021.
CanaFarma Hemp has said it intends to use the proceeds from the private placement to provide a working capital loan to Vertical Wellness Inc., a company with which the company recently entered into an MOU to acquire, to fund other potential acquisitions, and meet general working capital needs.
The securities to be issued pursuant to the private 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 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