Heritage Cannabis Enters Equity Financing With Obsidian Global Partners, LLC
Heritage Cannabis Holdings Corp. (CSE: CANN, OTCQX: HERTF) announced an equity line of credit agreement with Obsidian Global Partners, allowing the purchase of common shares for up to US$20 million. An initial fee of 1.5% will be paid upon closing, with an additional fee due after half the offering is drawn. The proceeds will fund corporate needs. The Investor's ownership is capped at 9.99% of shares. CEO David Schwede highlighted this equity financing as a sign of the company's growth and market recognition.
- Equity line of credit agreement enables funding of up to US$20 million.
- Initial fee of 1.5% showcases investor confidence.
- CEO emphasizes growth potential and market recognition.
- None.
NOT FOR DISTRIBUTION TO
On closing, Heritage will pay the Investor an initial fee in an amount equal to
Heritage will also advance 79,030,611 Common Shares to the Investor in escrow (the “Escrow Shares”). The Escrow Shares will be subject to the Statutory Lock-Up and will only be released to the Investor in tranches as and when Heritage requests that the Investor purchase Common Shares pursuant to the ELOC Agreement. Any Escrow Shares that are not purchased by the Investor will be subject to cancellation at the end of the term of the ELOC Agreement.
Heritage will use the proceeds of the equity line of credit for general corporate purposes and expenses of the Offering.
In accordance with the terms of the ELOC Agreement, at no time shall the Investor be issued Common Shares which would result in the Investor beneficially owning in aggregate greater than
“The closing of this deal with Obsidian is another indication that Heritage has a solid foundation for a sustainable business. With access to additional equity funds, we can continue to grow even stronger from quarter to quarter. We are adding new revenue streams, expanding across borders, and this equity financing will assist us with our continued plan for future growth. The market is starting to recognize that Heritage is a real player and a company to keep their eyes on.” stated
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in
About
Heritage is a leading cannabis company offering innovative products to both the medical and recreational legal cannabis markets in
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
“David Schwede”
CEO
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading “Risks and Uncertainties” in the Company’s annual management discussion and analysis for the year ended
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.
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Tel: 647-660-2560
kcastledine@heritagecann.com
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FAQ
What is the equity line of credit agreement announced by Heritage Cannabis Holdings Corp (HERTF)?
What are the fees associated with the ELOC Agreement for Heritage Cannabis (HERTF)?
How will Heritage Cannabis use the proceeds from the equity line of credit?
What limit is placed on the investor's ownership in Heritage Cannabis (HERTF)?