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Lifestyle Delivery Systems Announces Completion of Brokered and Non-Brokered Private Placement Financings
2017-05-31 15:46 ET - News Release
Vancouver, British Columbia--(Newsfile Corp. - May 31, 2017) - Lifestyle Delivery Systems Inc. (CSE: LDS) (OTCQB: LDSYF) (FSE: LD6) (WKN: A14XHT) ("LDS" or the "Company") is pleased to announce that, it has closed its previously announced brokered private placement financing (the "Brokered Private Placement") as well as a concurrent non-brokered private placement financing (the "Non-Brokered Private Placement").
A total of 14,213,000 units (the "Units") were sold in the Brokered Private Placement at a price of Cdn$0.50 per Unit (the "Issue Price") for total gross proceeds of Cdn$7,106,500. Each Unit sold in the Brokered Private Placement consisted of one common share of the Company (each a "Unit Share") and one common share purchase warrant (each a "Warrant") entitling the holder to purchase one additional common share (a "Warrant Share") at a price of $0.75 per Warrant Share for a period ending one year from the date of issuance. The Company may accelerate the expiration date of the Warrants if the daily volume weighted average share price of the Company's common shares on the Canadian Securities Exchange (or such other stock exchange as the Company's common shares are then trading on) is equal to or greater than Cdn$1.50 for 10 consecutive trading days. Canaccord Genuity Corp. (the "Agent") acted as agent for the Brokered Private Placement. In consideration of its services, the Agent received a commission equal to 7.0% of the gross proceeds of the Brokered Private Placement, paid by issuance of 164,100 Units at a deemed price of $0.50 per Unit, with the balance paid in cash. As additional consideration, the Company issued to the Agent that number of broker warrants ("Broker Warrants") equal to 7.0% of the aggregate number of Units sold under the Brokered Private Placement. Each Broker Warrant is exercisable for one Unit at the Issue Price for a period of 12 months from closing of the Offering.
Concurrent with the closing of the Brokered Private Placement, the Company sold a total of 3,174,776 Units also at a price of Cdn$0.50 per Unit in the Non-Brokered Private Placement for total gross proceeds of Cdn$1,587,388. The Units sold in the Non-Brokered Private Placement have substantially the same terms as the Units sold in the Brokered Private Placement. No commissions or fees were paid in connection with the offer and sale of Units in the Non-Brokered Private Placement.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of any of the securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
About Lifestyle Delivery Systems Inc.
The Company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to smoking, but also a new way to accurately meter the dosage and assure the purity of the product. In addition, with the entering into its management services agreements with NHMC, Inc. and CSPA Group, Inc., the Company has begun its foray into being directly involved in the growing of medicinal ingredients for, and the manufacturing of, its products. From seed to sale, the Company's products and ingredients will be tested for quality and composition throughout the formulation and production processes, resulting in a delivery system that is safe, consistent and effective.
On behalf of the board of directors of Lifestyle Delivery Systems Inc.
Brad Eckenweiler, CEO & Director
FOR MORE INFORMATION, PLEASE CONTACT:
investor.relations@lifestyledeliverysystem.com
1-866-347-5058