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TORONTO, Sept. 10, 2019 /CNW/ - Mojave Jane Brands ("Mojave Jane" or the "Company") (CSE: JANE) (OTC: HHPHF) (FSE: 0HCN), a California cannabis company, is pleased to announce that the Company has closed a non-brokered private placement of 15,930,500 units of the Company (the "Units") at $0.20 per Unit for gross proceeds of $3,186,100 (the "Offering").
Each Unit consists of one common share in the capital of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share at a price of $0.30 per Share on or before September 9, 2021. The securities are subject to a hold period of four months and one day from the closing date of September 9, 2019. This private placement was previously announced on July 24, 2019 under terms (the "Announced Terms") that were subsequently amended due to market conditions. The units were repriced in the context of the market from the previously Announced Terms of $0.25 with a half warrant at $0.40. The Company confirms that the Announced Terms do not form part of the completed Offering and no subsequent Offering on the Announced Terms is anticipated to be completed at this time.
The Company has paid eligible finder cash commissions in the aggregate amount of $100,086 and issued non-transferable warrants (the "Finder's Warrants") to finders to acquire up to a total of 347,430 Shares. Each Finder's Warrant entitles the holder to purchase one Share at a price of $0.20 per Share on or before September 9, 2020.
The net proceeds from the Offering will be used by the Company to fund strategic acquisitions, expand Mojave Jane's delivery footprint and for general working capital.
Mojave Jane CEO Gary Latham commented:
"Mojave Jane is pleased with the demonstration of support for the Company's growth strategy that this financing represents. We intend to deploy the proceeds to expand our extraction, manufacturing and delivery capabilities in the burgeoning California market through a blend of expansion and acquisition."
About Mojave Jane Brands
Mojave Jane Brands Inc. is a Canadian-based cannabis sector brand and distribution company emerging as a true vertical integrator in California's legal cannabis space serving recreational and wellness markets. The Company's U.S. holdings are comprised of assets set up as a vertical stack including cultivation to scale, branding, packaging, manufacturing & processing, a distribution arm, the CALIGOLD edibles brand and access to the Speedweed delivery platform. Operating out of licensed strategic locations within the state, Mojave Jane is leveraging its consumer and brand-focused business model to generate sustainable profits delivering quality product by recognized brands.
Mojave Jane trades in Canada, ticker symbol JANE on the CSE, and in Europe, ticker symbol 0HCN on the FSE. Neither the CSE, nor the FSE has approved nor disapproved the contents of this press release. Neither the CSE, nor the FSE accepts responsibility for the adequacy or accuracy of this release.
Marijuana Industry Involvement
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate. Marijuana is legal in certain states however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Mojave Jane's ability to access private and public capital could be affected and or could not be available to support continuing operations.
On behalf of the Board of Directors
Mojave Jane Brands Inc.
This news release contains forward-looking statements. The Company has provided the forward-looking statements in reliance on assumptions that it believes are reasonable at this time. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, delays resulting from or inability to obtain required regulatory approval. The actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.
All monetary references herein refer to Canadian dollars unless otherwise specified.
SOURCE Mojave Jane Brands Inc.
For further information: 8 Wellington St. E. Mezzanine Level | Toronto, On | M5E 1C5 | www.MojaveJane.com; Gary Latham, Chief Executive Officer & Director, Email: [email protected], Phone: (760) 552-7122