Sunniva Announces Closing Of Second Tranche Of Debt Financing For Additional Gross Proceeds Of USD $6,000,000

Not for Dissemination in the United States or for Distribution to U.S. Newswire Services

VANCOUVER, British Columbia, Oct. 15, 2019 /CNW/ -- Sunniva Inc. ("Sunniva", the "Company", "we", "our" or "us") (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services, announces that it has closed the second tranche of the Company's non-brokered private placement (the Offering"), previously announced on August 28, 2019, of USD $6,000,000 for a total of 6,000,000 units of the Company ("Units") bringing total gross proceeds raised by the Offering to USD $7,500,000 for a total of 7,500,000 Units. Each Unit consists of a principal amount of unsecured promissory notes of the Company ("Promissory Notes") and common share purchase warrants of the Company ("Warrants").

Proceeds of the Offering will be used towards the payment of capital costs at the Sunniva California Campus, including payments to the Sunniva Production Campus, LLC, working capital for operations in California, and general corporate purposes.

The Units issued under the Offering have the following terms:

Promissory Notes

• Maturity:	18 months from the closing date.
• Interest Rate:	10% (annual rate).

Warrants

• Number of Warrants:	1.11 Warrants per Unit (each Warrant entitles the holder to acquire one common share of the Company at the Warrant Exercise Price).
• Warrant Exercise Price:	USD $0.90 (CAD $1.20) per Warrant.
• Warrant Term:	24 months from closing.

The Promissory Notes and Warrants have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Promissory Notes or Warrants in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

For more information please visit: www.sunniva.com.

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The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

About Sunniva, Inc.

Sunniva, through its subsidiaries, is building a vertically integrated cannabis company operating in two of the world's largest legal cannabis markets – California and Canada. In Canada, Sunniva's wholly owned subsidiary Natural Health Services Ltd. operates medical cannabis clinics that provide educational and clinical services to patients. In California, Sunniva is focused on creating sustainable premium cannabis brands supported by our large-scale, purpose-built cGMP designed greenhouse, extraction facility and our in-house marketing and distribution businesses. We offer a steadfast commitment to safety and quality assurance providing cannabis products free from pesticides, which positions Sunniva in California as a leading provider of safe, high quality, reproducible products at scale.

Cautionary Note Regarding Forward-Looking Information or Statements

This press release contains forward-looking information or statements. All statements that are or information which is not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Sunniva's operations and growth opportunities, use of proceeds of the Offering, Sunniva's focus on creating sustainable premium cannabis brands, Sunniva's commitment to safety and quality assurance while providing cannabis products free from pesticides, and Sunniva's positioning in California as a leading provider of safe, high quality, reproducible products at scale, are "forward-looking information or statements". Forward-looking information or statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking information and statements contained herein, Sunniva has made numerous assumptions including, among other things, assumptions about general business and economic conditions and assumptions that Sunniva's infrastructure in California will allow it to create sustainable premium cannabis brands. Such forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking information or statements. Such risks and uncertainties include, among others, the risk factors included in the Sunniva's continuous disclosure documents available on www.sedar.com. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking information or statements. Although Sunniva has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking information or statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking information or statements. Sunniva assumes no obligation to update any forward-looking information or statements, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.

Company Contacts:

SOURCE Sunniva Inc.

Related Links

https://www.sunniva.com