International Land Alliance Announces $2.0 Million Private Placement

Rhea-AI Summary

International Land Alliance (OTCQB: ILAL) announced a definitive agreement for a private placement of 3 million shares at $0.68 per share. The offering is expected to generate approximately $2 million before expenses. Additionally, warrants for 3 million shares at the same price will be issued. Proceeds will support sales and marketing efforts, particularly at the Oasis Park Resort, aiming for over $60 million in gross lot sales. The closing is anticipated on or about July 29, 2021.

Positive

• Secured $2 million in gross proceeds from the sale of 3 million shares at $0.68 each.
• Potential to generate over $60 million in gross lot sales at the Oasis Park Resort.
• Proceeds will be utilized for construction, sales, marketing, and debt retirement, enhancing operational capabilities.

Negative

• Warrants issued could lead to shareholder dilution if exercised.
• Dependence on the success of sales and marketing efforts to realize projected revenue.
• Risks associated with market conditions affecting the execution of business plans.

SAN DIEGO, CALIFORNIA, July 27, 2021 (GLOBE NEWSWIRE) -- International Land Alliance, Inc. (OTCQB: ILAL), (“ILA” or the “Company”), an international land investment and development firm, today announced that it has entered into a definitive agreement with a single institutional investor for the purchase of 3,000,000 shares of its common stock at a purchase price per share of $0.68, in a private placement.

Additionally, ILA has also agreed to issue to the investor warrants to purchase up to 3,000,000 shares of common stock. The warrants have an exercise price of $0.68 per share, will be immediately exercisable and will expire five and one half years from the issuance date. The closing of the offering is expected to occur on or about July 29, 2021, subject to the satisfaction of customary closing conditions.

“We expect the completion of this funding will allow ILA to fulfill the heightened demand at several of our residential communities,” said Jason Sunstein, Vice President of ILA. “At our Oasis Park Resort, we are ramping up our sales and marketing efforts to potentially realize over $60 million in gross lot sales alone, as well as additional revenue from construction of homes. We anticipate using these proceeds to commence sales and accelerate development at each of our luxury communities, given the building cost efficiencies in Baja California relative to Southern California. We are looking forward to advancing ILA’s operational strategy, and ultimately build sustainable value for our stakeholders.”

H.C. Wainwright & Co. is acting as exclusive placement agent for the offering.

The gross proceeds to ILA, before deducting placement agent fees and other offering expenses, are expected to be approximately $2.0 million. ILA intends to use the net proceeds from the offering for construction, sales and marketing, debt retirement and general working capital purposes.

The securities described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and Regulation D promulgated thereunder, and the securities have not been registered under the Act or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the Company has agreed to file a resale registration statement covering the shares of common stock and shares of common stock underlying the warrants described above within 30 days.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About International Land Alliance, Inc.:

International Land Alliance, Inc. (OTCQB:ILAL) is an international land investment and development firm based in San Diego, California. As its core mission, the Company has embraced technology for sustainable and socially responsible solutions, in addition to using proptech and construction tech advanced applications to meet these goals. The Company is focused on acquiring attractive raw land primarily in Northern Baja California, often within driving distance from Southern California. The Company serves its shareholders by devoting considerable time and resources to seeking out the finest sites available and obtaining the necessary development permits to build a compelling portfolio of properties, which provide a diversity of investment and living options. Please visit: www.ila.company.

Safe Harbor Statement

The press release may include certain statements that are not descriptions of historical facts but are forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, and other forward-looking terminology such as “may,” “expects,” “believes,” “anticipates,” “intends,” “projects,” or similar terms, variations of such terms or the negative of such terms. Such statements include those relating to the private placement, including closing of the private placement and the use of net proceeds from the private placement, and our ability to execute on our business plan. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to market and other conditions, significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectation and actual results may vary (perhaps materially) from certain of the results anticipated herein.

CONTACT:

Investor Relations:
Brooks Hamilton
Senior Vice President
MZ Group – MZ North America
(949) 546-6326
ILAL@mzgroup.us
www.mzgroup.us

FAQ

What is the share price for International Land Alliance's recent private placement?

The share price for the recent private placement is $0.68.

How much capital is International Land Alliance raising in their private placement?

International Land Alliance is raising approximately $2 million in the private placement.

What are the expected uses for the proceeds from International Land Alliance's private placement?

Proceeds will be used for construction, sales and marketing, debt retirement, and general working capital.

What is the significance of the Oasis Park Resort for International Land Alliance?

The Oasis Park Resort is expected to potentially generate over $60 million in gross lot sales for the company.

When is the expected closing date for the private placement by International Land Alliance?

The expected closing date for the private placement is on or about July 29, 2021.