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Naturally Splendid closes final tranche of financing
2019-06-07 19:11 ET - News Release
Mr. Douglas Mason reports
NATURALLY SPLENDID CLOSES PRIVATE PLACEMENT
Naturally Splendid Enterprises Ltd. has closed the third and final tranche of a non-brokered private placement financing for a total of 2,581,426 units at 14 cents per unit for gross proceeds of $361,399.64.
In connection with the tranche 3 financing, Naturally Splendid paid finders a cash commission totalling $2,240 and issued a total of 16,000 finders' warrants. Each finder's warrant has the same terms and conditions as the warrants. The securities issued under the third tranche closing will be subject to a hold period expiring on Oct. 8, 2019, pursuant to applicable securities laws and the rules of the TSX Venture Exchange.
Combined, the company has raised a total of 11,781,196 units, for total proceeds of $1,649,367.44 in the three tranches of its non-brokered private placement (see the company's news releases of April 18, 2019, and May 1, 2019) and paid cash commission totalling $48,986 and issued a total of 475,900 finders' warrants.
Each unit in the non-brokered private placement consists of one common share of Naturally Splendid and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at 21 cents per share for a period of two years from the date of the issue. 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 35 cents 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.
Proceeds of the private placement will be used for expansion of Naturally Splendid's existing facilities, to increase manufacturing capacity and for general working capital purposes.
Naturally Splendid is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation in the private placement by insiders did not exceed 25 per cent of the fair market value of Naturally Splendid's market capitalization.
About Naturally Splendid Enterprises Ltd.
Naturally Splendid is a biotechnology and consumer products company that is developing, producing, commercializing and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient dense foods and related products. Naturally Splendid is building an expanding portfolio of patents (issued and pending) and proprietary intellectual property focused on the commercial uses of industrial hemp and marijuana cannabinoid compounds in a broad spectrum of applications.
We seek Safe Harbor.
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