Chalice Brands Ltd CHALF

Golden Leaf Holdings closes financing

[kijiji]

GOLDEN LEAF HOLDINGS ANNOUNCES FINAL CLOSING OF NON-BROKERED PRIVATE PLACEMENT

 

All tranches of Golden Leaf Holdings Ltd.'s non-brokered private placement of units, previously announced on Dec. 21, 2020, have now closed. The company received total subscriptions for gross proceeds of $3,446,121. Each unit comprises one common share of the company and one common share purchase warrant. Each warrant is exercisable to acquire one common share at an exercise price of six cents per warrant share for a period of 24 months from the closing. The units will have a hold period of four months and one day from the date of issuance. Finders' fees of 5 per cent in cash and 5 per cent in finders' warrants, with each such warrant entitling the holder to acquire one common share for six cents for a period of 24 months, were paid on certain subscriptions. Insiders have subscribed for a total of approximately $300,000.

 

Included in the non-brokered offering were subscriptions from certain directors and officers, who were issued units at a deemed issue price of five cents in satisfaction of foregone 2020 compensation totalling C$404,528.

 

In total, six directors and officers have subscribed for a total of $704,528 or 20 per cent of the offering, demonstrating their confidence in the future of Golden Leaf Holdings.

 

About Golden Leaf Holdings Ltd.

 

Golden Leaf Holdings is a premier consumer-driven cannabis company specializing in production, processing, wholesale, distribution and retail, with seven dispensaries in Portland, Ore. The company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Markets served include Oregon, California, Nevada and Washington.

[Rocketquebec]

What it s mean ? Good or bad news? Thank you to explain to the ones with low experience . 

[GideonO]

I just means that the offering of shares in the placement have closed - they will be diluting the total amount of shares meaning your piece of the pie has gotten a bit smaller. however they will be pulling in 3 million+ in cash right before becoming cash flow positive which is good - its also good that insiders bought at the 0.05 range as that shows confidence that they will likely be worth more

[campst]

@GideonO: Another thesis, one I have posted about numerous times over the past year, is that the board has been grooming this company for sale. your point that this financing is coincident with cash flow positive status, and the resulting strengthened balance sheet) suggests that a sale could come sooner rather than later. After all, the company is now in a much better bargaining position. I don

[GideonO]

that would depending on any terms of sale - generally if the buy out is a share conversion normally warrents would transfer over at the same ratio as the shares with the strike price being adjusted to based on the purchasing companys stock price. personally I would like to see at least another year worth of growth before any attempts at a buy out as there could be some significant gains in that

[campst]

Good Insight, GideonO. Thanks.

[GideonO]

To add to this, I suspect if we see a reverse split announced - if there is no corresponding announcement for uplisting then its likely they are grooming for a takeover.

[Nicksonsnowboar]

l agree that if they plan to go it themselves than a reverse needs to happen if share holders want to see this move. My guess would either be 50 or100 to 1 split 

[RickyBobby412]

Don't think they are looking to get bought out. Based on this recent news release looks like GLH wil be looking to acquire other businesses. Here is what was said "As we near profitability, we will continue to execute our business plan and look for accretive acquisitions to grow our footprint."