Next Green Wave $3M Financing - Cash is King NowThursday, May 30, 2019, 3:59 PM ET
Vancouver, British Columbia--(Newsfile Corp. - May 30, 2019) - Next Green Wave Holdings Inc. (CSE: NGW) (OTCQB: NXGWF) ("Next Green Wave", "NGW" or the "Company") announces that it has closed the first tranche of the non-brokered offering of 3,000 unsecured Convertible Notes with a face value of $1,000 each (the "Convertible Notes") for aggregate gross proceeds to the Company of $3,000,000 (the "Offering"). The Convertible Notes will mature on May 29, 2021 and accrue interest at the rate of 8.5% per annum, payable in arrears semi-annually on June 30, and December 30 of each year, commencing June 30, 2019. The principal amount of the Convertible Notes is convertible, for no additional consideration, into common shares of NGW (the "Shares") at the option of the holder at any time prior to the close of business on the Maturity Date, at a price of $0.388 (the "Conversion Price"). The subscribers of the Convertible Notes have been issued transferable common share purchase warrants (the "Warrants") entitling them to collectively purchase 7,732,357 shares for a period of 24 months from the date of issue at an exercise price of $0.485 (the "Exercise Price"). Beginning on the date that is four months plus one day following the closing date, the Company may force the conversion of the Convertible Notes, if, for any twenty (20) consecutive trading days, the daily volume weighted average trading price of the common shares is greater than a 80% premium to the Conversion Price. The Company shall also be entitled to accelerate the expiry date of the Warrants if, for any 20 consecutive trading days, the closing price of the common shares equals or exceeds an 85% premium to the Exercise Price. Full terms of the Offering have been referenced on news release dated April 25, 2019.
The Company may access the second $3,000,000 tranche at its sole discretion within 45 days of the closing date.
Proceeds of the Offering will be used for the acceleration and rollout of Next Green Wave's brands and products throughout California, including making certain payments for the SDC Ventures LLC acquisition. The products will be developed in partnership with: Carey Hart, King Louie, Sketchy Tank, Junkyard LA, Toy Machine Skateboard, WEARESDC, OSS and recently launched Loki the Wolfdog CBD pet products (
https://lokinaturals.com/).
"The funding will allow us to continue with the rollout of the highest quality consumer-facing products and advance the build-out of our research and innovation facility that will further open our distribution channels," said CEO, Leigh Hughes.
The Company has paid an advisory fee and commission to M Partners in connection with the above financing. M Partners has also received finder warrants entitling them to purchase units of the Company equal to 7% of the number of Shares into which the Convertible Notes are convertible, at the Conversion Price, each unit consisting of a share and a share purchase warrant. The share purchase warrants issued to M Partners have the same terms as the Warrants. The Convertible Notes, Warrants, and shares issuable on conversion or exercise thereof in conjunction with this first tranche closing will be subject to a statutory hold period expiring September 30, 2019.