Sunniva Announces Closing of Second Tranche of Convertible Debt Financing for Gross Proceeds of $3.3 Million
Monday, March 4, 2019 8:40 AM
Not for Dissemination in the United States or for Distribution to U.S. Newswire Services
VANCOUVER, BC / ACCESSWIRE / March 4, 2019 / Sunniva Inc. ("Sunniva", the "Company", "we", "our" or "us") (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services, is pleased to announce that it has closed the second tranche of the Company's non-brokered offering (the "Financing") of convertible debentures ("Convertible Debentures") for an additional CAD $3,288,125 million, bringing total gross proceeds raised by the Financing to CAD $18,330,180 million.
As previously disclosed, this Financing provides additional working capital for Sunniva to meet higher than anticipated near term sales demand for its branded cannabis products in California and for general corporate purposes.
The second tranche of the Financing included participation from employees of the Company and its subsidiaries including insiders of the Company. A finder's fee of 5% was paid to certain investment advisors for introducing certain purchasers of Convertible Debentures to the Company.
The Convertible Debentures offered have not been 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 Convertible Debentures in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company will provide a full corporate update on its Canadian and US operations, as well as a preliminary outlook for 2019 in its 2018 fourth quarter and year-end financial release.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world's two largest cannabis markets – California and Canada. Our ability to leverage our large-scale, purpose-built cGMP designed greenhouse, offering better quality assurance with cannabis products free from pesticides, uniquely positions Sunniva as a leading supplier of safe, high quality products at scale. Through our strategically positioned cultivation and extraction facilities in California, we are launching Sunniva branded products in various product categories including flower, pre-rolls, vape cartridges, and premium concentrates. Our compliant distribution in California will ensure the placement of Sunniva branded products at licenced dispensaries throughout the state. We continue to pursue other upstream vertical opportunities. Sunniva's management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"), including, but not limited to, statements relating to the Company's use of proceeds from the Financing, the pursuit of upstream vertical opportunities, the timing of completion of the Company's cannabis purchase contracts, and the preparation for large-scale production at the Company's greenhouse in Cathedral City, California. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Dr. Anthony Holler
Chairman and Chief Executive Officer
Phone: (866) 786-6482
Phil Carlson / Erika Kay
KCSA Strategic Communications
Phone: (212) 896-1233
Email: [email protected] / [email protected]
KCSA Strategic Communications
Phone: (212) 896-1252
Email: [email protected]
SOURCE: Sunniva Inc.