Flow Beverage Corp. Closes First Tranche of Private Placement of Convertible Debenture Units for CDN$1.73 Million
Each Convertible Debenture Unit was comprised of: (i) one
The Convertible Debentures will mature three years from their date of issue (the "Maturity Date") and bear interest ("Interest") at a rate of
Beginning on the date that is six months from the issuance of the Convertible Debentures, the principal amount of the Convertible Debentures may be converted into Conversion SVS, in whole or in part, at the option of the holders of the Convertible Debentures at the Conversion Price. Holders converting their Convertible Debentures will receive accrued and unpaid interest on the principal amount of the Convertible Debentures converted for the period from and including the date of issue to, but excluding, the date of conversion, with such interest being accrued and compounded annually and paid on the Maturity Date.
Beginning on the date that is six months from the issuance of the Convertible Debentures, the Company may force the conversion of all of the outstanding principal amount of the Convertible Debentures at the Conversion Price if the daily volume weighted average trading price of the SVS on the Toronto Stock Exchange (the “TSX”) exceeds
Provided that no event of default has occurred under the Convertible Debentures which is continuing, the Company has the right to redeem the whole or any portion of the outstanding principal amount of the Convertible Debentures without any premium or penalty at a redemption price equal to the outstanding principal amount under the Convertible Debentures, together with interest on the principal amount so redeemed accrued and unpaid to the date fixed for redemption.
The Warrants include a mandatory exercise provision whereby, if at any time following the date that is six months from the issuance of the Warrants and prior to the expiry date of the Warrants, the closing trading price of the SVS exceeds
The Convertible Debentures, the Warrants, the Conversion SVS and the Warrant SVS are subject to a statutory hold period of four months and one day from the date of issuance of the Convertible Debenture Units ending on May 1, 2025.
The proceeds of the Private Placement will be used for working capital and general corporate purposes. The Private Placement remains subject to final approval by the TSX.
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 any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "1933 Act") and may not be offered or sold to, or for the account or benefit of, persons in
The TSX does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved the contents of this press release.
About Flow
Flow is one of the fastest-growing premium water companies in
For more information on Flow, please visit Flow’s investor relations site at: investors.flowhydration.com.
Forward-Looking Statements
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“Forward-Looking Statements”). The Forward-Looking Statements contained in this press release relate to future events or Flow’s future plans, operations, strategy, performance or financial position and are based on Flow’s current expectations, estimates, projections, beliefs and assumptions, including, among other things, the intention to close additional tranches of the Private Placement, the total proceeds intended to be raised in the Private Placement and the allocation of the use of proceeds from the Private Placement. Such Forward-Looking Statements have been made by Flow in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be forward‐looking statements. Such Forward‐Looking Statements are often, but not always, identified by the use of words such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “expect”, “believe”, “anticipate”, “estimate”, “will”, “potential”, “proposed” and other similar words and expressions.
Forward-Looking Statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors, many of which are beyond Flow’s control, that could cause actual events, results, performance and achievements to differ materially from those anticipated in these Forward-Looking Statements. Forward-Looking Statements are provided for the purposes of assisting the reader in understanding Flow and its business, operations, prospects, and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-Looking Statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on these Forward-Looking Statements, which speak only as of the date of this press release. Unless otherwise noted or the context otherwise indicates, the Forward-Looking Statements contained herein are provided as of the date hereof, and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any Forward-Looking Statements as a result of new information or future events, or for any other reason.
The following press release should be read in conjunction with the management’s discussion and analysis and consolidated financial statements and notes thereto as at and for the three and nine months ended July 31, 2024. Additional information about Flow is available on the Company’s profile on SEDAR+ at www.sedar.com, including the Company’s Annual Information Form for the year ended October 31, 2023 dated January 29, 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241231444255/en/
Trent
1-844-356-9426
investors@flowhydration.com
Investors:
Marc Charbin
investors@flowhydration.com
Media:
Natasha Koifman
nk@nkpr.net
Source: Flow Beverage Corp.