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CALGARY, Sept. 16, 2019 /CNW/ - RMMI Corp. ("RMMI" or the "Company"), (CSE: RMMI) announces that it has closed a secured note financing of $1,000,000 (the "Financing"). Proceeds of the Financing will be used to provide short term working capital and for general corporate purposes as the Company continues to work with Health Canada to receive its licence to produce. Members of RMMI's executives and board of directors have participated in the Financing in the collective amount of $425,000. The balance of the funds was generated entirely from the contacts of the executives and board of directors.
Each member of RMMI's executive and board of directors are deemed to be a "related party" as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") of the Company as set out below (the "Related Subscriber")
The acquisitions of notes by the Related Subscriber constituted a "related party transaction" within the meaning of MI 61-101. The Company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 as the Financing is a loan transaction where no securities, convertible or otherwise, are issued or to be issued.
"RMMI continues to work closely with Health Canada on its application to receive a licence to produce. We anticipate that we are within 30 business days of receiving a licence from Health Canada," Earl Connors, CEO of RMMI commented. "The Financing will provide flexibility for the Company to continue with its progress on its Newell facility renovations and explore other traditional forms of financing that are expected to become available once the Company receives its licence from Health Canada. The funding of $425,000 by members of the executive and board of directors (with an additional $575,000 raised from their contacts) demonstrates the faith and confidence Company insiders have regarding the progress and prospects of the Company."
The terms of the Financing include:
- Matures December 31, 2019;
- Secured by the Newell facility; and
- 12% annual interest rate.
No warrants or exchangeable securities were issued for the Financing. No finder's fees were paid for the Financing.
At this time, RMMI has deferred its non-brokered offering of 12% unsecured Convertible Debenture Units that was announced August 6, 2019.
For more information on our facility and its technology, please visit: www.rmmi.ca
About RMMI Corp.
RMMI is an Alberta based company that focuses on the production, cultivation and sale of marijuana in various forms. RMMI, through its wholly owned subsidiary, Rocky Mountain Marijuana Inc., is a late stage applicant under the Cannabis Act (Canada) and is in the process of obtaining its license to commence cannabis production and operations. Rocky Mountain blends science with nature, using aeroponic cultivation and CO2 extraction, and intends to produce high-purity, organic-quality cannabis and cannabis oils. RMMI's team will employ leading commercially available science and technology to maximize production yields and product quality as a low-cost producer, while reducing risk to its crops and its business.
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Forward Looking Statements
Certain statements contained in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of the applicable securities legislation (collectively, "forward-looking statements"). These statements relate to management's expectations about future events, results of operations and RMMI's future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Unless otherwise indicated, these statements speak only as of the date of this news release. In particular, this news release contains forward-looking statements pertaining RMMI's future business plans, Newell facility renovations and its expected date for a receipt of a licence to produce from Health Canada.
Forward-looking statements are based on certain assumptions and analyses made by RMMI in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate and are subject to risks and uncertainties. In making the forward-looking statements, RMMI has made various material assumptions, including but not limited to, receipt of applicable regulatory licences from Health Canada, material assumptions relating to general business and economic conditions and RMMI's ability to successfully execute its business plans strategy. Although RMMI believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and RMMI cannot assure that actual results will be consistent with the forward-looking statements included in this news release. Given these risks, uncertainties and assumptions, readers should not place undue reliance on the forward-looking statements in this news release and should review the various risk factors set forth in RMMI's AIF dated February 28, 2019.
The forward-looking statements included in this news release are expressly qualified by this cautionary statement and, except as otherwise indicated, are made as of the date of this news release. RMMI does not undertake any obligation to publicly update or revise any forward-looking statements or departures from them except as required by applicable securities laws. All of the forward-looking statements contained in this news release are expressly qualified by the foregoing cautionary statements.
For further information: Earl Connors, President and Chief Executive Officer, [email protected], 403-835-8050