BEVCANNA RECEIVES $750,000 IN PROCEEDS LED BY EXECUTIVE MANAGEMENT TO FUEL CONTINUED GROWTH Bevcanna Enterprises Inc. has received a capital injection of $750,000. The funds are the proceeds of a unit private placement of $250,000 at 25 cents per unit and a $500,000 senior management exercise of 1.5 million stock options at an exercise price of 30 cents per share.
The funds are being used to provide additional working capital, including that related to the preparation of the company's Canadian industry-leading high-capacity beverage manufacturing operations for the imminent receipt of the company's standard processing licence from Health Canada. Receipt of this licence will enable Bevcanna to begin production at the manufacturing facility for its white-label clients and to begin selling its products through licensed Canadian retailers.
"This capital injection has allowed us to accelerate the equipping of our world-class beverage manufacturing facilities to process a range of infused cannabis beverages," said John Campbell, chief financial officer of Bevcanna. "We're in the final stages of approval for our standard processing licence, and these enhancements will ensure that we're ready to move ahead immediately upon receipt."
A portion of the funds are being invested into enhancements of Bevcanna's recently acquired direct-to-consumer website, Pure Therapy, stimulating revenue growth through the investment in customer acquisition and the addition of new products.
Each unit is composed of one common share in the capital of the issuer and one-half of one transferable common share purchase warrant. Each warrant will entitle the holder thereof to acquire one share at a price of 40 cents per warrant share until 5 p.m. PT on the date of expiration of the warrant, which is two years following the closing date.
The securities acquired in the private placement are subject to resale restrictions imposed by applicable law or regulation, including a statutory hold period expiring four months and one day from the date of the private placement.
About Bevcanna Enterprises Inc.
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, Bevcanna owns the exclusive rights to a pristine spring water aquifer, access to a world-class 40,000-square-foot, HACCP (hazard analysis critical control point)-certified manufacturing facility, with a current bottling capacity of up to 210 million bottles per annum. Bevcanna also recently acquired U.S. 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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