HempFusion Wellness Inc (TSX:CBD.U, OTCQX:CBDHF) has announced a non-brokered private placement of 8 million units of the company at a price of US$0.25 per unit to raise gross proceeds of US$2 million.
The Denver, Colorado-based health and wellness CBD company said it plans to allocate the gross proceeds of the placement “to general working capital and marketing initiatives.”
In the financing, each unit is comprised of one common share and one share purchase warrant. Each warrant will entitle the holder to acquire one additional share at a price of US$0.50 per share for a period of four years from the closing date of the private placement, expected on or about September 12, 2021.
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The closing of the private placement is contingent on several conditions, including receiving regulatory approvals, including approval of the Toronto Stock Exchange.
All securities issued under the private placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation, noted the company.
The company enjoys high visibility as its family of brands — HempFusion (TSX:CBD.U, OTCQX:CBDHF), Probulin Probiotics, Biome Research, and HF Labs — are widely distributed to around 4,000 retailers spread across all 50 states in the US and select international locations.
In addition, HempFusion’s wholly-owned subsidiary Probulin Probiotics, is one of the fastest-growing probiotics companies in the US, according to data technology company SPINS. Since gut health is the next big wellness trend, Probulin Probiotics is poised for high-octane growth.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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