BevCanna Enterprises Inc. (CSE:BEV) (FRA:7BC), has announced plans for a non-brokered private placement of up to 10 million units at an offering price of $0.50 each, to raise gross proceeds of up to $5.0 million.
“We’re very pleased with the show of confidence we’re seeing from prospective investors,” John Campbell, chief financial officer of the emerging leader in cannabis-infused beverages said in a statement.
“As we approach commercialization of our products in the Canadian market and are seeing significant progress in our U.S. cannabidiol and natural products strategy, we will use the funds to accelerate our cannabis and traditional CPG strategies in both markets. This will further solidify our leadership position within the North American beverage and natural products landscape,” he added.
Each unit will consist of one common share of the company and one share purchase warrant. Each warrant will be exercisable to acquire one additional common share at an exercise price of $0.75 per share for a period two years from the date of closing of the offering. The terms of the offering are subject to acceptance of the Canadian Securities Exchange.
The group said the proceeds of the offering will be used to provide working capital support for:
- Expansion of the Company’s Canadian cannabis operations in anticipation of receipt of its Health Canada issued Standard Processing License, and the subsequent commercialization of BevCanna’s house brand and white-label client products throughout Canada
- Continued growth of Pure Therapy, BevCanna’s U.S. nutraceutical and hemp-CBD e-commerce platform
- Progression of the Company’s retail commercialization strategy for its house brand beverages
- Evaluation of prospective M&A opportunities
There is no minimum aggregate proceeds amount that is required to close the offering. All securities issued in connection with the offering will be subject to a statutory hold period expiring four months and one day from the date of issuance in accordance with applicable securities legislation.
BevCanna develops and manufactures cannabinoid–infused beverages and consumer products for in–house brands and white label clients. With decades of experience creating, branding and distributing iconic brands that have resonated with consumers on a global scale, the team demonstrates an expertise unmatched in the emerging cannabis beverage category.
Based in British Columbia, Canada, the company owns the exclusive rights to a pristine spring water aquifer, access to a world–class 40,000–square–foot, HACCP certified manufacturing facility, with a current bottling capacity of up to 210M million bottles per annum.
The group also recently acquired US natural health and wellness e-commerce platform Pure Therapy. BevCanna's vision is to be a global leader in infused innovations.
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