Love Pharma Inc said it has completed the first closing of a non-brokered private placement, accepting subscriptions for 21,175,000 units at a price of $0.014 per unit, for gross proceeds of $296,450.
The company said that proceeds will be used for working capital and to review possible acquisitions.
Each unit in the placing consists of one common share in the equity of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the company at a price of $0.05 per share for a period of two years from the closing of the financing, subject to the option of the company to accelerate the expiry date in the event that its shares trade at $0.15 or more for 10 consecutive days.
READ: Love Pharma enters into agreement to buy Doc Hygiene for US$300,000
Two insiders of the company subscribed for an aggregate of 3,000,000 common shares in the placement, Love Pharma noted. The company also said it paid $2,072 in cash and issued 108,000 finder's warrants to qualified finders.
Securities issued under this placement tranche are subject to trading restrictions until December 24, 2022.
The company also announced that under its stock option plan it has issued 17,750,000 incentive stock options to certain officers, directors, employees, and consultants of the issuer exercisable at a price of $0.05 per share for a period of five years, vesting immediately.
Love Pharma also announced that it has entered into contractual agreements for marketing, communication, shareholder engagement, market making and social media communications. The marketing and communication program will include certain investor relations activities and is designed to provide improved visibility in the company's current and planned operations.
The company has entered into agreements with Penny Lane Consultants for a period of four weeks for US$21,157.50 and has entered into an agreement with Red Cloud Securities Inc for a period of three months for a total of C$15,000.
Love Pharma was founded in 2020, with a mission to bring to market innovative products that enhance sexual health and wellness while providing an improved quality of life.
The company holds exclusive licenses to produce market, package, sell, and distribute patent-protected therapeutic and pharmaceutical products throughout Europe, the United Kingdom, and North America.
Contact the author at jon.hopkins@proactiveinvestors.com