PlantX Life Inc. (CSE:VEGA) has said it intends to raise up to C$10 million in a non-brokered private placement of 200 million units at a price of $0.05 each.
In addition, it may issue an over-allotment of up to 40 million units for additional gross proceeds of up to C$2 million, should demand for the offering prove higher than expected, the plant-based products company said in a statement.
The net proceeds from the fundraise will be used for business development, working capital and general corporate purposes, it added.
READ: PlantX Life sees its gross revenue hit nearly C$1.5M in June 2022
The offering, which is expected to close on or around July 28, 2022, will be led by PlantX management and certain company insiders, who will commit a minimum of C$1 million towards the offering.
Each unit will be comprised of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one common share for a period of 24 months from the date of issuance of the warrant at an exercise price of $0.05.
In the event that the trading price of the common shares on the Canadian Securities Exchange equals or exceeds $0.25 per common share for any period of ten consecutive trading days, the company may, within ten business days following such ten-day period, accelerate the warrant expiry date by issuing a press release. In such case, the warrant expiry shall be deemed to be 5pm (Vancouver time) on the 30th day following issuance of the warrant acceleration press release.
Although the offering will be non-brokered, the company may, as compensation to dealers and individuals that introduce subscribers to the company pay a cash finder's fee to each finder equal to 6% of the aggregate gross proceeds of the subscribers introduced to the company by such finder; and issue non-transferable common share purchase warrants to each finder, with terms identical to the warrants issued under the offering, equal to 6% of the aggregate units of the subscribers introduced to the company by such finder.
The securities issued in connection with the offering will be subject to a four-month hold period.
PlantX's platform is the one-stop shop for everything plant-based. With its fast-growing category verticals, the company offers customers across North America more than 5,000 plant-based products. In addition to offering meal and indoor plant deliveries, the company currently has plans underway to expand its product lines to include cosmetics, clothing and its own water brand.
Contact the author at jon.hopkins@proactiveinvestors.com