LeanLife Health (CSE:LLP) Inc said it has completed the first tranche of its up to C$1 million non-brokered private placement, raising C$365,000 by issuing 7.3 million company units at a price of $0.05 per unit.
LeanLife said it intends to use the proceeds from the offering for general capital purposes and towards the licensing agreement/product purchase orders with Foodcare for Mike Tyson-endorsed Iron Energy drinks.
The company noted that each unit of the private placement is comprised of one LeanLife Health (CSE:LLP) common share plus one-half a transferrable share purchase warrant, with each full warrant entitling the holder to purchase an additional company share at a price of $0.075 for a two-year period after the closing date.
READ: LeanLife Health places large purchase order for Tyson Iron Energy beverages to meet growing demand
LeanLife noted that in connection with the closing of the first tranche of the offering, it will pay finder's fees totalling $27,000 in cash and will issue 540,000 finders warrants, with each finders warrant being exercisable for a company common share at a price of C$0.075 for a period of two years from the issue date, which will be subject to an accelerated expiry provision.
Following the expiry of the resale restrictions on the units, if the daily volume-weighted average price of the company's shares on the Canadian Securities Exchange is C$0.20 per share or greater for any 10 consecutive trading days during the period where the warrants are outstanding, the company may, by written notice to the holder or by issuing a news release, accelerate the warrant expiry date to be 30 days following the date of such notice or news release.
All the securities issued are subject to a four-month and one-day hold period from the date of issuance.
Based in Vancouver, LeanLife Health (CSE:LLP) is the exclusive distributor of Iron Energy drink products. The FoodCare Group, the supplier and maker of Iron Energy, is a market leader in Poland’s energy drink market and is a leading brand in the Middle East.
Contact Sean at sean@proactiveinvestors.com