Captiva Verde Announces Increase of Private Placement and Closing of Tranche One

Rhea-AI Summary

Captiva Verde Wellness Corp (CSE: PWR, OTC: CPIVF) has increased its private placement from 150M to 160M units at C$0.02 per unit, targeting aggregate proceeds of C$3.2M. Each unit includes one common share and a three-year warrant exercisable at C$0.05. The company has received funds for 10M units in the first tranche, with the remaining 150M units expected to close within 45 days. The proceeds will support general working capital and advance sustainable real estate projects. Additionally, under a previous Option Agreement with the Strasser Group, 12.3M shares were purchased on October 31, with another 12.3M shares to be funded this week.

Positive

• Secured C$200,000 in first tranche funding
• Increased private placement size by 10M units to C$3.2M total
• Three-year warrants provide potential additional funding at C$0.05 per share

Negative

• Significant dilution through 160M new units issuance
• Low unit pricing at C$0.02 indicates potential undervaluation

Vancouver, British Columbia--(Newsfile Corp. - November 25, 2024) - Captiva Verde Wellness Corp. (CSE: PWR) (OTC Pink: CPIVF) ("Captiva") a public company listed on the Canadian Securities Exchange under the trading symbol PWR and further listed on the US OTC Market under the symbol CPIVF announces that, further to its news release of October 11, 2024, the Company has increased the private placement from 150,000,000 units to 160,000,000 units arranged with a European finder, Cormel Capital LLC, to issue and sell by way of a private placement 160,000,000 units of the Company (each, a "Unit") at C$0.02 per Unit for aggregate gross proceeds of up to C$3,200,000 (the "Private Placement"). Each Unit will be comprised of one common share and one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire an additional common share (a "Warrant Share") at an exercise price of C$0.05 per Warrant Share for a period of three years. The Company intends to use the net proceeds raised in the Private Placement for general working capital and as a reserve to advance Captiva's business of developing sustainable real estate projects that was disclosed in the Company's final prospectus dated September 20, 2018. The company has received funds for 10,000,000 units and will proceed to close this first tranche. The second tranche of 150,000,000 units will close within 45 days.

All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws.

The securities issued pursuant to the Private Placement have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

Option Agreement

Under a previously stated Option Agreement, the Strasser Group granted to the Company the option, but not the obligation, to identify purchasers of up to 37,000,000 common shares in the capital of the Company beneficially owned or controlled, directly or indirectly, by any member of the Strasser Group at a price of C$0.02 per common share (the "Option"), which could be exercised, in whole or in part, 1/3 of the option, at any time on or before 4:00 p.m. (Vancouver time) on October 31, 2024; (ii) another 1/3 of the Option may be exercised, in whole or in part, at any time on or before 4:00 p.m. (Vancouver time) on November 30, 2024; and (iii) the remaining 1/3 of the Option may only be exercised, in whole or in part, at any time on or before 4:00 p.m. (Vancouver time) on December 31, 2024. As of today, 12,300,000 shares were purchased on October 31, 2024 and the second option of 12,300,000 shares will be funded this week.

On Behalf of the Board of Directors

"Jeff Ciachurski"

Jeffrey Ciachurski
Chief Executive Officer and Director
Cell: (949) 903-5906
E-mail: westernwind@shaw.ca

Neither Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward Looking Information

This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities laws and United States securities laws (together, "forward-looking statements"). All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to completion of the transactions contemplated by, or in connection with, the Repurchase Agreement and Option Agreement, as amended by the Repurchase Amending Agreement and Option Amending Agreement, respectively, and the receipt of all required regulatory approvals therefor, the Private Placement and the use of proceeds raised in the Private Placement. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget", "propose" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. Forward-looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: general business and economic conditions, including interest rates and the rate of inflation, the Company's current expectations about: opportunities, market standards, vacancy and rental growth rates, demographic trends, the realization of property value appreciation and timing thereof, the price at which properties may be acquired and disposed of and the timing thereof, the availability of mortgage financing and current interest rates, assumptions about the markets in which the Company intends to operate, expenditures and fees in connection with the maintenance, operation and administration of properties, the timely receipt of all necessary permits and regulatory approvals, the impact of geopolitical events, including the conflicts in Ukraine and the Middle East, and government regulations or tax laws. There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among other things, the availability of suitable real estate for purchase by the Company, the availability of mortgage financing for such properties, and general economic and market factors, including interest rates, prospective purchasers of real estate, the attractiveness of developed properties and the ability of the Company to sell its properties, business competition, public health crises and disease outbreaks, changes in government regulations or income tax law, and .those described under the heading "Risks and Uncertainties" in the Company's most recently filed MD&A (a copy of which is available under the Company's SEDAR+ profile at www.sedarplus.ca). The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231253

FAQ

What is the size and price of Captiva Verde's (CPIVF) private placement announced in November 2024?

Captiva Verde announced a private placement of 160 million units at C$0.02 per unit, totaling C$3.2 million.

How many units were funded in the first tranche of Captiva Verde's (CPIVF) November 2024 private placement?

The first tranche consisted of 10 million units, with funds already received by the company.

What are the terms of the warrants in Captiva Verde's (CPIVF) 2024 private placement?

Each warrant allows the holder to acquire one additional common share at C$0.05 per share for a three-year period.