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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.
This news release contains certain forward-looking statements, including, but not limited to, statements about Pure Global's future plans and intentions. Forward-looking information includes, without limitation, statements regarding the Company's ability to complete the acquisition of an interest in Sativa Nativa S.A.S. and the use of proceeds from the Offering. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, Pure Global cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and Pure Global assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Pure Global Cannabis Inc.
For further information: regarding Pure Global, please contact: Stephen Pynn, VP Corporate Development, Telephone: 1-866-899-PURE (7873), E-mail: [email protected]; Malay (Mel) Panchal, President & CEO, Telephone: 1-866-899-PURE (7873), E-mail: [email protected]