HempFusion Announces Increase to Private Placement

Rhea-AI Summary

HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) has expanded its non-brokered private placement from USD $2,000,000 to over USD $2,500,000 to meet increased investor demand. This funding will bolster the company's financial position as it navigates the current market. The private placement's closing date has been extended to September 30, 2021, pending necessary approvals. Additionally, David Doherty has resigned as a director of the company.

Positive

• Increased private placement size from $2,000,000 to over $2,500,000, indicating strong demand.
• The funding will support company growth and maintain a strong balance sheet.

Negative

• Resignation of director David Doherty could impact company leadership stability.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

DENVER--(BUSINESS WIRE)-- HempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness Company offering premium probiotic supplements and products containing CBD, is pleased to announce it has increased the size of its previously announced non-brokered private placement from USD $2,000,000 to over USD $2,500,000 (the “Private Placement”). This increase is designed to accommodate additional demand that the Company has received in the financing.

“We received quite a few requests from our large network of retail investors, brokers, and funds, to allow further access into this small strategic private placement,” commented Dr. Jason Mitchell, HempFusion’s Co-founder and Chief Executive Officer. “While we continue to maintain a strong balance sheet, the incoming funds represent strong investors with expected long term time horizons, and we’re excited to welcome them into our Company at such a pivotal time,” continued Dr. Mitchell.

The closing of the Private Placement has been extended to September 30, 2021 and remains subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the Toronto Stock Exchange. Full details of the Private Placement are set out in the Company’s news release issued on August 27, 2021, a copy of which is available under the Company’s SEDAR profile at www.sedar.com.

Further, the Company announces that David Doherty has resigned as a director of the Company effective September 17, 2021. The board of directors of the Company expresses their appreciation to Mr. Doherty for his contribution to the Company.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described in this news release in the United States. Such securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the account or benefit of persons in the United States or "U.S. Persons", as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

ABOUT HEMPFUSION

One of a select few CBD companies who are today fully prepared to meet or exceed expected FDA guidance, HempFusion Wellness Inc. is a leading health and wellness company whose family of premium consumer brands include HempFusion™, Sagely Naturals™, Apothecanna™, and Probulin Probiotics™, one of the fastest-growing probiotics companies in the United States according to SPINs reported data.

Utilizing the power of whole-food hemp nutrition, the HempFusion family of brands’ product portfolio comprises 112 SKUs including USDA Organic Certified Tinctures, proprietary FDA Drug Listed Over-The-Counter (OTC) Topicals, probiotic supplements and skin care products, a Doctor/Practitioner line, a White Label division and more. With a strong focus on research and development, HempFusion Wellness has 43 products under development.

Available from more than 15,000 US retail locations across all 50 states, HempFusion Wellness products are also available in China, Mexico, Ireland, United Kingdom, United Arab Emirates, South Korea and Canada and may be purchased online from each brand’s website, The Probulin Store on Amazon.com, Alibaba’s Tmall.com, the world’s largest cross-border online marketplace, and a multitude of additional e-commerce sites.

For more information, visit www.hempfusion.com.

Follow HempFusion on Twitter, Facebook and Instagram.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, “forward-looking statements“) that relate to HempFusion’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed 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. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward-looking statements relating to the closing of the Private Placement and the Company’s other plans, focus and objectives.

Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond HempFusion’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact and progression of the COVID-19 pandemic and other factors set forth under “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the annual information form of the Company dated March 31, 2021, and available under the Company’s profile on SEDAR at www.sedar.com. HempFusion undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for HempFusion to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210917005087/en/

Jason Mitchell, N.D.

Chief Executive Officer and Director

Email: ir@hempfusion.com

Phone: 416-803-5638

Source: HempFusion Wellness Inc.

FAQ

What is the new funding amount for HempFusion's private placement (CBDHF)?

HempFusion has increased its private placement size to over USD $2,500,000.

When is the closing date for HempFusion's private placement (CBDHF)?

The closing date has been extended to September 30, 2021.

Who resigned as a director of HempFusion (CBDHF)?

David Doherty has resigned as a director effective September 17, 2021.

What stock symbols does HempFusion operate under?

HempFusion operates under TSX:CBD.U, OTCQX:CBDHF, and FWB:8OO.