HempFusion (TSX:CBD.U, OTCQX:CBDHF) Wellness Inc has announced an increase in the size of its previously-announced US$2 million non-brokered private placement to more than US$2.5 million to “accommodate additional demand that the company has received.”
The Denver, Colorado-based health and wellness CBD company said it plans to use the gross proceeds from the placement for general working capital and marketing initiatives.
“We received quite a few requests from our large network of retail investors, brokers, and funds, to allow further access into this small strategic private placement,” HempFusion Wellness CEO Jason Mitchell said in a statement.
READ: HempFusion Wellness expansion plans expected to boost its FY2021 revenue to between US$12.5M and US$13.5M
“While we continue to maintain a strong balance sheet, the incoming funds represent strong investors with expected long-term time horizons, and we’re excited to welcome them into our company at such a pivotal time,” Mitchell added.
HempFusion noted the closing of the private placement has been extended to September 30, 2021 and remains subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the Toronto Stock Exchange.
As well, the company revealed that David Doherty has resigned as company director effective September 17, 2021.
HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to about 4,000 retail locations across all 50 states of the US and select international locations.
In addition, its wholly-owned subsidiary Probulin Probiotics is one of the fastest-growing probiotics companies in the US, according to data technology company SPINS. The subsidiary offers the unique MAKtrek 3-D system that ensures more probiotics arrive alive.
Contact Sean at sean@proactiveinvestors.com