TORONTO, March 22, 2016 /CNW/ - GreenSpace Brands Inc. ("GreenSpace") (TSXV: JTR) is pleased to announce that, further to the disclosure in its final prospectus dated February 22, 2016 (the "Prospectus"), it has entered into a loan agreement (the "Loan") with a syndicate of lenders (collectively, the "Lenders") for gross proceeds of $1.9 million.
The Loan is secured, will bear interest at a rate of 12% per annum and has a term of 12 months plus one day (the "Term"). In connection with the Loan, GreenSpace will issue to the Lenders a loan bonus in the form of an aggregate of 126,667 common shares (each a "Common Share") and an aggregate of 1,520,000 non-transferable warrants (each a "Warrant"), each Warrant entitling the holder thereof to acquire one Common Share for the Term at a price of $0.85 per Common Share (each a "Warrant Share") for a period of one year from the date of issuance. The Common Shares and Warrants issued in connection with the Loan (and any Warrant Shares issued on the exercise of the Warrants) will be subject to a statutory four month hold period, commencing on the date of issuance. The issuance of the Common Shares and the Warrants is subject to final TSX Venture Exchange approval.
The net proceeds of the Loan will be used by GreenSpace for the repayment of certain existing debt and for working capital and general corporate purposes.
GreenSpace is a Canadian-based brand ideation team that develops, markets and sells premium natural food products to consumers across Canada. GreenSpace owns Rolling Meadow Dairy, Canada's first grass fed dairy product line that has built upon the founding values of GreenSpace's original brand, Life Choices. Life Choices features premium convenience meat products made with grass fed and pasture raised meats without the use of added hormones and antibiotics. GreenSpace owns Holistic Choice, a premium natural pet food line and Nudge, a line of family favorite foods made better. GreenSpace also owns Love Child (Brands) Inc., a producer of 100% organic food for infants and toddlers made with the purest, natural and most nutritionally-rich ingredients and recently acquired Central Roast, a clean snacking brand that has been one of the leading natural food brands in Canada over the last several years. All brands are wholly owned and retail in a variety of natural and mass retail grocery locations across Canada. For more information visit www.greenspacebrands.ca. GreenSpace's filings are also available at www.SEDAR.com.
Forward Looking Information
Certain statements in the documents referred to in this press release may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, statements concerning the Corporation's financial position in the future, business synergies and plans with respect to the mandatory secured agreement. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. Although GreenSpace believes that the expectations reflected in its forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because GreenSpace can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things, the timely receipt of required regulatory approvals. Details of the risk factors relating to GreenSpace and its business are discussed under the heading "Risk Factors" in the Prospectus and "Risks and Uncertainties Related to the Business" in GreenSpace's annual information form dated November 9, 2015, a copy of which are available on GreenSpace's SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by GreenSpace and described in the forward looking information. The forward-looking information contained in this press release is made as of the date hereof and GreenSpace undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this press release is expressly qualified by this cautionary statement.
Neither the 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.
SOURCE GreenSpace Brands Inc.