Orchid closes over subcribed $4.2M placementGreat news. I think we'll see a much higher share price coming our way as the company executes on its plan. Capital needs are now met...
ORCHID VENTURES CONSOLIDATED ITS SHARES AND CLOSES OVER-SUBSCRIBED PRIVATE PLACEMENT OF UNITS The Company is also pleased to announce that it has closed its previously announced non-brokered private placement of units of the Company (the "Units") by the issuance of 16,838,000 Units at $0.25 per Unit for gross proceeds of $4,209,500.00 (the "Offering").
Each Unit consists of one post Consolidation Share and one-half of one transferrable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one additional post Consolidation Share at a price of $0.40 on or before April 1, 2023.
The Company has paid eligible finders cash commission in the total amount of $276,850.00, being 7% of the aggregate proceeds from the sale of Units to purchasers introduced by the finders.
The Company has also issued non-transferable common share purchase warrants (the "Finder's Warrants") to the finders for the purchase of up to a total of 1,107,400 post Consolidation Shares, being 7% of the number of Units sold under the Offering. Each Finder's Warrant will entitle the holder to purchase one post Consolidation Share at a price of $0.25 on or before April 1, 2023.
All securities issued in connection with the Offering are subject to a statutory hold period of four months and one day ending on August 2, 2021. The Company intends to use the net proceeds of the Offering for general working capital.
The Company's post Consolidation Shares begin trading on the Canadian Securities Exchange (the "CSE") on April 1, 2021. The name of the Company and trading symbol remain the same after the Consolidation. The post Consolidation CUSIP number is 68573L206, and the new ISIN number is CA68573L2066.
Letters of transmittal with respect to the Consolidation will be mailed to all registered shareholders of the Company. All registered shareholders will be required to send their respective certificates representing the pre Consolidation Shares along with a properly executed letter of transmittal to the Company's transfer agent, Olympia Trust Company. ("Olympia"), in accordance with the instructions provided in the letter of transmittal. Additional copies of the letter of transmittal can be obtained through Olympia at 15877742340 or by email to cssinquiries@olympiatrust.com. All shareholders who submit a duly completed letter of transmittal along with their respective pre-Consolidation Share certificate(s) to Olympia will receive a post Consolidation Share certificate or Direct Registration Advice representing the post Consolidation Shares.
"Today marks a significant day in the future of Orchid Ventures. We have managed to perform what we feel to be a very successful turnaround and strategic shift in our business. Now that we have proven to ourselves that we have a business model that can be successful and importantly sustainable, the next step was to properly capitalize the company in order to accelerate growth. This placement was dominated by strategic investors that share our vision of providing the best performing and safest vaporizers on the market, and leveraging our proprietary technologies and design capabilities to provide customers with high-value products that will help build their brands." said Corey Mangold, CEO of Orchid Ventures, Inc. "With capital injected into our company, we can now aggressively market our revolutionary PurTec vaporizer products and the Orchid Brand Licensing Platform. We have the products, we have the technology, we have the services, we have the team, and with decades of marketing experience, we are confident that the capital raised will enable us to achieve our aggressive growth initiatives. We believe that we are now in the position to build the foundation necessary to deliver on our strategic growth priorities, thereby driving shareholder value. We will be hosting a virtual shareholder update meeting within the next 30 days and will announce details in the coming weeks."
About Orchid Ventures, Inc.
Orchid Essentials is a California-based cannabis innovation company that has developed a mass-market brand and loyal consumer following with its premium cannabis products and unique vape hardware delivery systems. Orchid also owns 100% of PurTec Delivery Systems, a company that produces, markets, and sells clean vaporizer hardware that has been emissions tested against the most stringent standards in the world set forth by the EU and has unrivaled product quality and value pricing. Orchid's management brings significant branding, product development, and distribution experience with a proven track record of scaling businesses and building sustainable revenue growth through value-generating partnerships and innovation that creates enterprise value. Learn more at https://orchidessentials.com/
ON BEHALF OF THE BOARD OF DIRECTORS - ORCHID VENTURES, INC.
Corey Mangold
CEO and Director
investors@orchidventures.com
Investor Relations
Corey Mangold
949-357-5818
corey@orchidventures.com