viewRed White & Bloom Brands Inc.

Tidal Royalty completes US$5M private placement and financing fee agreement with Lighthouse

The cannabis industry financier says it’s entitled to 1% of the net sales of Lighthouse beverage lines

 A marijuana leaf
Lighthouse has the pieces in place to become a market leader in cannabis beverages, according to Tidal Royalty

Tidal Royalty Corp (CSE:RLTY.U) said it has closed its US$5 million private placement with Lighthouse Strategies LLC and a concurrent financing fee agreement.

The Toronto-based cannabis industry financier said in a press release that it’s entitled to 1% of the net sales of Lighthouse beverage lines, including Cannabiniers, Two Roots Brewing Co and Creative Waters Beverage Co.

READ: Tidal Royalty makes strategic investment in Lighthouse Strategies, maker of the first non-alcoholic cannabis-infused craft beer

Lighthouse operates 11 companies serving both traditional and regulated markets, including vertically integrated cannabis assets licensed in California and Nevada. The company is known for developing the world's first non-alcoholic, cannabis-infused craft beer and liquor brand, according to Tidal Royalty.

"Our enthusiasm for infused beverages has only grown since we initially announced this transaction," Tidal Royalty CEO Paul Rosen said in a statement. “We believe that Lighthouse has all the pieces in place to be a market leader in this space."

Under the deal, financing fees will accrue until Dec. 1, when Tidal Royalty may choose to receive such fees in cash or membership units of Lighthouse. After that, financing fees are payable quarterly in cash.

The term of the financing fee agreement is four to six years, depending on the achievement of certain milestones. Included are acceleration provisions in the event of a substantial asset divestiture, change of control or initial public offering.

Shares of Tidal fetched US$0.13 in Wednesday’s Canadian trading.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

Quick facts: Red White & Bloom Brands Inc.

Price: 0.66 CAD

Market: CSE
Market Cap: $99.94 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Red White & Bloom Brands Inc. named herein, including the promotion by the Company of Red White & Bloom Brands Inc. in any Content on the Site,...


Tidal Royalty to fund Illinois cannabis company with up to US$41mln

Tidal Royalty Corp. (CSE:RLTY) (OTC:TDRYF) CEO Paul Rosen tells Proactive Investors that the company has secured a letter of intent with a cannabis company in Illinois to provide the licensed operator with up to US$41mln in financing. The group, which provides cannabis companies in the US...

on 23/8/18

2 min read