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The Company is pleased to announce that after strong investor demand it is increasing the size of its private placement of unsecured debenture units
Yerbaé Brands Corp. (the “Company” or “Yerbaé”) (TSXV: YERB.U) – a plant-based energy beverage company, is pleased to announce that due to significant investor demand it has increased the size of its previously announced private placement of unsecured convertible debenture units (the “Debenture Units”). The Company will now issue up to 4,000 Debenture Units at a price of US$1,000 per Debenture Unit (the “Issue Price”) for aggregate gross proceeds of up to US$4,000,000 (the “Offering”).
“We are incredibly excited by the strong demand in our current financing by both new and existing shareholders, the increase to US$4,000,000 will accelerate the growth of the Company’s marketing, increased distribution, and working capital," said Todd Gibson, Founder and CEO of Yerbaé plant-based energy.
The Offering is being conducted by a syndicate of agents led by Beacon Securities Limited (“Beacon”) and including Echelon Wealth Partners Inc. and Roth Canada Inc. (collectively with Beacon, the “Agents”). The Company closed the first tranche of the Offering for aggregate gross proceeds of $1,650,000 on April 13, 2023.
The Company has also granted the Agents an option (the “Agents’ Option”), exercisable in whole or in part at any time up to 48 hours prior to the closing of the final tranche of the Offering, to sell up to an additional 600 Debenture Units (each, an “Additional Debenture Unit”) at a price per Additional Debenture Unit equal to the Issue Price for additional gross proceeds up to US$600,000, with each Additional Debenture Unit being sold on the same terms as the Debenture Units.
The securities offered will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About Yerbaé Brands Corp.
Founded in 2017 by Todd Gibson and Karrie Gibson, Yerbaé Brands Corp., (TSXV: YERB.U) is disrupting the energy beverage marketplace with great tasting, zero sugar, zero calorie beverages, while using plant–based ingredients that are designed to meet the needs of the wellness forward consumer. Harnessing the power of nature, Yerbaé's celebrity ingredient, Yerba Mate, contains caffeine and has 196 different vitamins, minerals and nutrients.
By combining Yerba Mate, a South American herb with its premium ingredients and flavors, Yerbaé provides consumers with a no compromise energy solution. All Yerbaé energy beverages are zero calorie, zero sugar, non–GMO, and gluten free.
Find us @DrinkYerbae on Instagram and Facebook.
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements relating to the Company. Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including, without limitation: the completion of the Offering on the terms outlined herein or at all as well as the intended use of proceeds therefrom. Forward-looking statements are based on assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. The material assumptions supporting these forward-looking statements include, among others, that the Company will be able to close and receive approval from the TSXV for the Offering; that the demand for the Company's products will continue to significantly grow; that the past production capacity of the Company's co-packing facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company's products; that the Company's brokers and distributors will continue to sell and prioritize the Company's products; that there will not be interruptions on production of the Company's products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company's products; and that the Company will be able to obtain additional capital to meet the Company's growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inability to close and receive final TSXV approval for the Offering; governmental regulations being implemented regarding the production and sale of energy drinks; the fact that consumers may not embrace and purchase any of the Company's products; additional competitors selling energy drinks reducing the Company's sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; the potential for supply chain interruption due to factors beyond the Company's control; the fact that there may be increases in costs and/or shortages of raw materials and/or ingredients and/or fuel and/or costs of co-packing; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact that consumers may not embrace energy drink products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers, brokers, and distributors; the Company's ability to raise the additional funding outside the Offering that it will need to continue to pursue its business, planned capital expansion and sales activity; and competition in the industry in which the Company operates and market conditions.
These forward-looking statements are made as of the date of this news, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this presentation are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in greater detail under "Risk Factors" in the Company's Information Circular dated November 13, 2022 available on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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