Pure Global Cannabis Completes $10 Million Financing
TORONTO, Sept. 17, 2018 /CNW/ – Pure Global Cannabis Inc. (TSX.V:PURE; OTC: PRCNF) (the “Company” or “Pure Global”), a vertically integrated growth-oriented life sciences cannabis company, is pleased to announce, further to its news release dated August 15, 2018, that it has completed a brokered private placement offering of convertible debenture units (the “Convertible Debenture Units”) of the Company, with a syndicate of investment dealers led by Eventus Capital Corp. and including PI Financial Corp., for gross proceeds of $10 million (the “Offering”).
Each Convertible Debenture Unit shall be comprised of $1,000 aggregate principal amount of 8% senior secured convertible debentures of Pure Global (the “Convertible Debentures”) and 1,429 warrants (the “Warrants”). The Convertible Debentures mature 36 months from the closing date of the Offering (the “Closing Date”) and, at any time following the date that is four months and one day following the Closing Date, will be convertible at the option of the holder into common shares of Pure Global at a conversion price $0.35 per share (the “Conversion Price”). Furthermore, beginning on the date that is four months and one day following the Closing Date, the Company may force the conversion of all of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on 30 days’ prior written notice should the daily volume weighted average trading price of the Pure Global common shares be greater than $0.65 for any 10 consecutive trading days. Each Warrant shall entitle the holder to acquire one common share of Pure Global at a price of $0.45 per share for a period of 36 months following the Closing Date.
The net proceeds of the Offering are intended to be used primarily to fund the acquisition of a 60% interest (the “Acquisition”) in Sativa Nativa S.A.S. (“Sativa Nativa”), a Colombian subsidiary of Avicanna Inc. (“Avicanna”). Completion of the Acquisition is subject to customary conditions for an investment of this nature, including satisfactory due diligence and the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange, and consents in Colombia and Canada. If the Acquisition is not completed, the Company intends to use the net proceeds of the Offering to fund alternate acquisition opportunities, organic growth initiatives and for general working capital purposes.
All securities issued in connection with the Offering are subject to a four month hold period expiring January 18, 2019.
About Pure Global Cannabis
Pure Global Cannabis Inc. (TSX.V:PURE; OTC: PRCNF) is a vertically-integrated, growth-oriented life sciences cannabis company led by experienced pharma-industry, horticultural, consumer packaged goods (CPG), and supply chain experts. The Company’s wholly owned subsidiary, PureSinse Inc., is a licensed producer under the Access to Cannabis for Medical Purposes Regulations (ACMPR) focused on producing cannabis products for medical, wellness, health & beauty, natural health, and future legal adult use markets.
To register to Pure Global’s mailing list, please visit www.pureglobal.com. Follow @pureglobalcanna on Twitter and Facebook and @pureglobalcannabis on Instagram.
