Trading Symbol: VPI
VANCOUVER, April 11, 2018 /CNW/ - Vitality Products Inc. (the "Company" or "Vitality") is pleased to announce the closing of its previously announced non-brokered private placement (the "Private Placement") pursuant to which the Company has now issued an aggregate of 5,000,000 units of the Company (each a "Unit"), at a subscription price of $0.10 per Unit, for gross proceeds of $500,000.
Each Unit consists of one common share (each a "Common Share") and one share purchase warrant (each a "Warrant") of the Company, and each such Warrant now entitles the holder thereof to acquire one additional common share of the Company for a period of one year from the closing of the Private Placement at an exercise price per Warrant common share of $0.15; provided, however, that if at any time after the date that is more than four months and one day following the closing of the Private Placement the closing price of the Company's common shares is equal to or greater than $0.40 per common share for a period of 20 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 10th business day after the date on which such notice is given by the Company.
The proceeds of the Private Placement will be used for the Company's general corporate and working capital purposes.
The Common Shares and the Warrants comprising the Units are now subject to a hold period of four months and a day from the date of closing in each instance.
VITALITY® is an award-winning line of clean vitamins and supplements, marketed to natural health retailers and health and wellness conscious consumers. Manufactured locally in BC, and currently sold in over 500 stores nationally, the products are vegan, non-GMO and third party tested. Following the proven success of the line through repeat orders, same store sales growth, and reaching profitability, the Company will use proceeds from the Private Placement to expand distribution and grow sales in-store and online (at vitality.ca, well.ca and amazon.ca); to explore additional markets; for inventory and general working capital.
"After a substantial year of sales growth across the line, and awards recognizing Power Iron + Organic Spirulina, we believe a private placement will further accelerate the expansion and market share of VITALITY both in-store and online," said Cheryl Grant, Vice President and CFO, adding, "this is an exciting time in the health and wellness space with 79% of Canadian families taking supplements."
On behalf of the Board of
VITALITY PRODUCTS INC.
"W. Douglas Grant" (signed)
W. Douglas Grant, President & CEO
Information set forth in this news release involves forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with marketing and sale of securities; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers or directors with certain other projects; and the volatility of common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and except as required by law, the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE SECURITIES LEGISLATION.
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 news release.
SOURCE Vitality Products Inc.
For further information: Vitality Products Inc., W. Douglas Grant, President and CEO, (604) 683-6611, [email protected]