CanaFarma Hemp Products Corp (CSE:CNFA, FRA:4K9). said it has closed the second tranche of its previously announced non-brokered private placement, issuing 7,210,613 units at a price of C$0.095 each for aggregate proceeds of C$685,008.
Each unit in the private placement 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 until August 6, 2021, at an exercise price of C$0.125 per share. 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 14, 2021.
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Together with the closing of the first tranche on August 6, 2021, the total amount raised to date under the private placement is C$1,230,008. As previously announced on July 27, 2021, the company is offering up to C$5 million of units, with the private placement expected to be completed in multiple tranches.
The company said it continues to collect subscription materials and funds and expects close one or more additional tranches prior to August 19, 2021.
CanaFarma has said it intends to use the proceeds from the private placement to provide a working capital loan to Vertical Wellnes 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 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