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Unique Private Placement Opportunity Opens up for Established Craft Cannabis Co.

Dave Jackson Dave Jackson, Stockhouse
6 Comments| November 17, 2021

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The latest offering on the Stockhouse DealRoom is a craft cannabis company that is launching a private placement…offering real value and opportunity.

And the key word as per above is ‘craft.’ As in ultra high-quality. And just like the beer and beverage industry, a huge percentage of consumers have consistently proven, over the past decade or so, that they prefer quality over quantity, and market share clearly demonstrates this. In fact, the North American craft beer industry is expected “to reach USD$190.66 billion by 2027 while exhibiting a CAGR of 10.4% between 2020 and 2027”. So it goes for craft cannabis, as well.

Alas, many of the big cannabis players didn’t see craft cannabis coming and how it affected their sales earlier this year, highlighting the impact craft cannabis has made in the industry.

In fact, according to a BNN Bloomberg article from January 2021, “You can't give away mid-range THC product for a buck now.”

Today, consumers have a much stronger preference for craft-grown cannabis. They’re consistently disappointed in the result of legalization in 2018, as retail markets have become flooded with low-quality, over-priced, and often irradiated cannabis. Enter Maven Brands Inc. (CSE.MJ, OTC PINK:TRLFF, FSE:TLAA, Forum), a different kind of cannabis company that says they’re solving the problem by collaborating with micro-cultivators to bring their craft cannabis to the regulated market. Today, micro-cultivators are one of the fastest-growing segments within the federal licensing system and face huge bottlenecks in getting their product to market. Maven's services program for micro-cultivators builds much-needed processing capacity in the industry. It offers a unique partner-focused model that will provide a transparent and sustainable path to market.


In the News

Maven Brands recently rebranded from True Leaf Brands Inc. and brought on craft cannabis proponent and industry influencer Andrew Gordon as VP of Strategic Growth. These maneuvers mark the company's transformation to a champion of the craft cannabis community and leading processor of high-demand craft cannabis.

Darcy Bomford, Maven’s Chief Executive Officer, commented on the rebranding initiative:

Click to enlarge
(CEO, Darcy Bomford. Source: Maven Brands.)

“A 'maven' is an outstanding expert in their field, eager to share their knowledge and create positive change through new ideas. Over the past year, we've recruited a team of our own legacy market mavens to lead the Company's transition into the cannabis processing sector.”

Click to enlarge


A Rare Investment Opportunity in the Cannabis Market

For experienced retail investors, investing in an equity raise for an established public company at the "ground floor" stage is a unique opportunity. This turnkey opportunity has supply relationships and key contracts in place, including an agreement to offer on-site natural microbial remediation for their micro-cultivator clients, a first for Western Canada.

Now, Maven Brands is offering a ‘private placement of equity’ opportunity to potential investors, with the company looking to raise gross proceeds of up to CDN$1.5 million. Best of all, there is no minimum amount.


Here’s the deal:

Under the terms of the Offering, the Company will offer for sale up to a maximum of 8,333,334 units (each a "Unit") at $0.18 per unit. Each Unit will consist of one common share (each a "Common Share") and one-half of one warrant, with each whole warrant (each a "Warrant") exercisable to purchase one additional Common Share (each a "Warrant Share") at an exercise price of CDN$0.27 for a period of two years from the issuance date of such Warrant. The Warrants are subject to an acceleration clause, such that if the common shares of Maven trading on the Canadian Securities Exchange (CSE) is greater than $0.60 for ten consecutive trading days after four months and one day from the closing date, Maven may accelerate the Warrant expiry date to the date which is 30 calendar days following the date a press release is issued by Maven announcing the acceleration terms.


The Offering may close in one or more tranches on or before December 6, 2021.

The Offering will be conducted in reliance upon certain prospectus exemptions. The Company may pay finder's fees in connection with this placement of up to 7% of the gross proceeds raised by eligible finders in cash or common shares.

NOTE: All of the securities issued pursuant to this Offering will be subject to a four-month hold period mandated by applicable securities laws and will be legended accordingly. Completion of the Offering is subject to receipt of all required CSE, regulatory and other approvals.


About Maven Brands Inc.

Maven Brands is a Licensed Processor (LP) of cannabis, preparing to launch a program to provide path-to-market services for micro-cultivators. The program will operate from the company's 19,500 square foot facility in Lumby, BC, and offer a full suite of in-house processing services to the craft cannabis community.

Maven Brands’ financing provides access to a unique business model that brings the Best in Craft™ cannabis to market with a substantial revenue-generating opportunity, all back-stopped by a valuable 40-acre industrial land package and a very attractive valuation.

The Stockhouse DealRoom: your destination to participate in exclusive financings, featuring some of the most innovative companies and best deals currently available on the market.




View from the C-Suite

In a recent conversation with The Market Herald’s Caroline Egan, Andrew Gordon, VP of Strategic Growth, talked about the company’s recent rebranding and the launching of their unique path-to-market services for micro-cultivators. See video Q&A below:



(Click image to play video)


For more information on the company, please visit mavenbrands.ca.


FULL DISCLOSURE: Maven Brands Inc. is a paid client ofStockhouse Publishing Ltd. (Stockhouse). Stockhouse is not registered as a broker, dealer, exempt market dealer, or any other registrant in any securities regulatory jurisdiction and will not be performing any registerable activity as defined by the applicable regulatory bodies. This deal room is for informational purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees, and expenses. The information contained in this deal room is selective and does not purport to contain all the information relating to Maven Brands Inc. In all cases, parties should conduct their own investigation and due diligence, not rely solely on the data provided herein and are encouraged to consult with a financial adviser, lawyer, accountant, and any other professional that can help to understand and assess the risks associated with any investment opportunity.

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