Parana Copper Corp. (CSE:COPR) hit a high bar this week as it announced it has completed its first tranche of a C$5mln non-brokered private placement, as well as completing its previously announced change of business to become a merchant bank, focusing on the medical cannabis, hemp and cannabidiol sector in Canada and the US.
The company issued 6.7mln units at C$0.30 for total proceeds of C$2,008,730. Funds will be used for general corporate purposes.
Each unit consists of one common share and one warrant, which entitles the holder to subscribe for one additional common share at C$0.55 for two years from closing, subject to the company having the right to accelerate the expiry date if the shares trade at C$0.75 for a period of 14 consecutive days, including days where no shares trade.
The company also announced it has issued 6.4mln common shares to the shareholders of Ultra invest Canada Inc. to acquire all of the currently issued and outstanding shares of Ultra, a non-arms-length private company controlled by the company's chief executive officer, Meris Kott, at a deemed price of C$0.15 per share.
Ultra has developed a base of potential banking customers. The company has agreed to issue another 1.5mln shares upon the exercise of outstanding Ultra options.
Company will change name to Redfund Capital
Subsequent to this, the company will effect a 1.6 for 1 stock split in conjunction with a name change to Redfund Capital Corp.
Redfund intends to provide debt and equity funding in the mid-to-late stages of a target company's development, or in technologies that are developed and validated but may be in the early stage of commercialization.
After the stock split, there will be a total of 41.2mln shares outstanding.
The company said shares will start trading as Redfund, with the trading symbol LOAN, when it is advised.
Redfund is not bound to commit to any particular sector, thereby allowing for diversification; however, the present focus is generally on medical cannabis, hemp and CBD-related, healthcare-related target companies.