(via TheNewswire)
VANCOUVER, British Columbia - TheNewswire - June 5, 2020 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid") (TSXV:NSP) (OTC:NSPDF) (Frankfurt:50N) is pleased to announce that it has closed its non-brokered private placement financing for a total of 42,857,159 units (the "Units") at $0.035 per Unit, for total gross proceeds of $1,5,000,000.
Each Unit consists of one common share of Naturally Splendid and one common share purchase warrant (each a "Warrant"), with each Warrant entitling the holder to purchase one additional common share for a period of two years from the date of the issue at an exercise price of $0.055 per share. Naturally Splendid has the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of Naturally Splendid's common shares is equal to or greater than $0.10 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after Naturally Splendid issues a news release announcing that it has elected to exercise this acceleration right.
In connection with the initial tranche of financing, Naturally Splendid paid finders a cash commission totaling $19,278 and issued a total of 550,800 finder's warrants. Each finder's warrant has the same terms and conditions as the Warrants.
The securities issued under the financing will be subject to a hold period expiring on October 5, 2020 pursuant to applicable securities laws and the rules of the TSX Venture Exchange.
The proceeds of the Offering will be directed primarily towards the Company's 100% owned Prosnack Safe Quality Food Level 2 (SQF2) Certified food manufacturing facility. Funds will be used to adapt standard operating procedures (SOPs) taking into consideration challenges presented by the pandemic, pay outstanding management fees of $30,000, retire corporate indebtedness and for general working capital purposes to support the food supply chain by manufacturing safe, nutritious, non-perishable bars and bites.
Company CEO Mr. J. Craig Goodwin states, "We are pleased to close this recent round of financing allowing the company to continue its role in the food supply chain. Food facilities with certifications such as our Safe Quality Food Level 2 designation have never been more valuable in my opinion. The demand for plant-based formulations for food, have never been higher and we expect this trend to accelerate during these challenging times, especially as many meat processors experience their own challenges due to COVID-19. Prior to COVID-19, the plant-based food category was growing at a rate outpacing traditional food channels and we expect this trend to continue post pandemic times. Our mission is to provide nutritious, tasty, plant-based foods to an ever growing market".