Core One Labs Inc C.COOL

LDS in the market doing small US side only Private Placement

[Stranius]

LDS (quietly) disclosed through it's US side filing on EDGAR that it is in the market doing a small private placement for US investors only. Pricing is the same as the Canaccord PP that closed on May 31, 2017. Additional details are here:

https://weeklyregister.com/lifestyle-delivery-systems-874745-fundraising-yanika-silina-published-jun-13-filing/

https://www.sec.gov/Archives/edgar/data/1640152/000153412217000024/xslFormDX01/primary_doc.xml

To summarize, the details of the PP is as follows:

• Total amount of raise is US$874,745 or C$1,180,971 for 2,361,941 units
• Total amount of raise filled is 40% or US$349,898 or C$472,388 for 944,776 units
• Total amount of raise yet to be sold is US$524,847 or C$708,583 for 1,417,165 units

I personally view this as a positive development (despite causing another minor delay) as the sources and uses were looking a bit tight after incorporating the upcoming payments to CSPA, NHMC, CEO Crystal Elrod, CEO Matt Fergusson, purchase of Transportation Permit Land not to mention the quarterly working capital burn rate.

The above incremental payments were always in the back of my mind and would have very quickly exhausted the C$2.1M general working capital that the company outlined in its CSE Form 9 that I mentioned here:

https://www.stockhouse.com/companies/bullboard/c.lds/lifestyle-delivery-systems-inc?postid=26318255

I had pointed out how tight things seemed to management earlier in June. Prior to this US side PP, it left very little room for error. This financing buys them a couple quarters of slack to address any logistical hiccups as they ramp up on production so I'm actually pleased to see them add the additional cash to the balance sheet. When taken together with the Canaccord PP on the Canadian side, the two deals together amount to C$9.9M which is inline with the initial C$10M headline number LDS announced.

~S