GEYSER BRANDS ANNOUNCES PARTIAL REVOCATION ORDER OF CEASE TRADE ORDER TO PERMIT COMPLETION OF PRIVATE PLACEMENT FINANCING
March 17, 2021 – Vancouver, BC – Geyser Brands Inc. (TSX-V: GYSR) (“Geyser Brands” or the “Company”) announces that the British Columbia Securities Commission (“BCSC”), the Company’s principal securities regulator in Canada, has issued an order dated March 8, 2021 partially revoking (the “Partial Revocation Order”) the failure-to-file cease trade order issued against the Company on September 17, 2020 (the “FFCTO”) for failing to file certain outstanding continuous disclosure documents in a timely manner.
The Company applied for the Partial Revocation Order to complete a non-brokered private placement (“Private Placement”) of up to 11,700,000 common shares (the “Offered Shares”) in the share capital of the Company at an issue price of $0.05 per Offered Share for aggregate gross proceeds of up to $585,000. The Company intends to proceed to complete the Private Placement; however, there can be no assurances that the Private Placement will be completed in full, or at all. The FFCTO continues to apply in all other respects.
The proceeds of the Private Placement will be used to prepare and file the Company’s outstanding financial statements and continuous disclosure records; and pay for certain critical business and operational expenses which need to be satisfied in order to protect the viability of the Company’s business in the interim period until it can apply for and receive a full revocation of the FFCTO. Once those filings have been completed, the Company will apply for a full revocation of the FFCTO.
Prior to completion of the Private Placement, each potential investor will receive a copy of the FFCTO and the Partial Revocation Order, and will be required to provide an acknowledgement to the Company that all of the Company's securities, including the Offered Shares issued in connection with the Private Placement, will remain subject to the FFCTO until such order is fully revoked, and that the granting of the Partial Revocation Order by the BCSC does not guarantee the issuance of a full revocation order in the future. In addition, in accordance with applicable securities legislation, all Offered Shares issued pursuant to the Private Placement will be subject to a hold period of four months and a day from the closing date of the Private Placement. Completion of the Private Placement is subject to satisfaction of certain customary closing conditions, including acceptance of the Private Placement by the TSX Venture Exchange. There can be no assurances that the Private Placement will be completed on the terms set out herein, or at all, or that the proceeds of the Private Placement will be sufficient for the purposes of the Company or its turnaround efforts.
On Behalf of the Board of Directors
“Wei Zhong”
Wei Zhong
Director and CEO wzhong@geyserbrands.com
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVI