Komo Announces Non-Brokered Private Placement

Rhea-AI Summary

Komo Plant Based Foods Inc. has announced a private placement offering of up to 1,000 units, priced at $1,000 each, totaling up to $1,000,000 in gross proceeds. Each unit includes a 10% convertible unsecured debenture and 7,000 common share purchase warrants. The debentures will have a 2-year redemption period and are convertible into common shares at $0.14 each. Net proceeds will support manufacturing, sales expansion, marketing, and salaries, furthering Komo's mission to promote plant-based eating across Canada and the U.S.

Positive

• Private placement offering aims to raise up to $1,000,000 for business expansion.
• Debentures and warrants provide investors with potential equity upside.
• Proceeds will be used for scaling up manufacturing and sales expansion.

Negative

• None.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / September 13, 2021 / Komo Plant Based Foods Inc. (CSE:YUM)(OTC PINK:KOMOF)(FSE:9HB) ("Komo" or the "Company") is pleased to announce a private placement offering (the "Offering") of up to 1,000 units of the Company ("Units") at a price of $1,000 per Unit, for gross proceeds of up to $1,000,000. Each Unit will consist of a 10% convertible unsecured debenture (the "Debenture"); and 7,000 common share purchase warrants of the Company ("Warrants").

The Debentures will bear interest at a rate of 10% per annum on an accrual basis from issuance, calculated and payable semi-annually in arrears on July 31 and January 31 of each year with such payment commencing on January 31, 2022 with a redemption date that is 24 months from issuance. The Debentures will be convertible in full or in part, at the holders' option, into common shares in the capital of the Company at a price of $0.14 per common share, at any time prior to their redemption. Each Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.16 per share for a period of 24 months from the date of issue.

The Company shall pay finders a cash commission equal to 8% of the gross proceeds of the Offering and a grant of such number of common share purchase warrants as is equal to 8% of the gross proceeds from the Offering, with each such warrant exercisable to purchase one common share of the Company at a price of $0.16 for a period of 24 months from the date of issue.

The Units will be eligible for RRSP, RESP, RRIF, TFSA and DPSP accounts within the meaning of the Income Tax Act (Canada) subject to certain qualifications, and will be subject to a statutory hold period expiring four months and one day from the closing date. The Units will be offered and sold by private placement in Canada to "accredited investors" within the meaning of NI 45-106 - Prospectus Exemptions and other exempt purchasers under the applicable securities laws.

All amounts are in Canadian dollars. The net proceeds from the Offering will be used to scale up manufacturing, sales expansion throughout Canada and the United States, marketing and salaries.

About Komo

Komo Plant Based Foods Inc. is a premium plant-based food company that develops, manufactures and sells a variety of plant-based frozen meals that are always hearty, satisfying, and made with wholesome ingredients. At Komo, our mission is to help make plant-based meals a staple on every dinner table by sharing our love for feel-good food that connects the people to the planet. We believe plant-based eating is the future and - Change can start with a single bite^TM. Our experienced plant-based innovation and development team recreates vegan versions of traditionally cheesy and meaty classics, with 100% plants. Komo's products are sold direct-to-consumer through our eCommerce website and a distribution network of online and brick and mortar grocery, convenience and natural retailer channels. Our operating subsidiary Komo Comfort Foods launched in 2021 with our flagship products: plant-based Lasagna, Shepherd's Pie and Chick'n Pot Pie and has recently launched a new line - Komo Plant-Based Meal Helpers^TM - versatile meal starters to allow the creation of many dishes at home.

Learn more at: www.komocomfortfoods.com and follow on Instagram: @komocomfortfoods

For further information, please contact:

William White, President & CEO
will@komoeats.com
1-866-969-0882

Renmark Financial Communications Inc.

Joshua Lavers: jlavers@renmarkfinancial.com
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

The Canadian Securities Exchange has not reviewed, approved or disapproved the contents of this news release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The 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 may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or Komo's future performance. The use of any of the words "could", "expect", "believe", "will", "projected","estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Komo's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Komo's product development plans, its ability to retain key personnel, and its expectation as to the acceptance of its products by consumers constitute forward-looking information. Actual results and developments may differ materially from those contemplated by forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information. The statements made in this press release are made as of the date hereof. Komo disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

SOURCE: KOMO Plant Based Foods Inc.

View source version on accesswire.com:
https://www.accesswire.com/663929/Komo-Announces-Non-Brokered-Private-Placement

FAQ

What is the purpose of Komo Plant Based Foods' recent private placement?

The private placement aims to raise funds for scaling up manufacturing, expanding sales, and marketing efforts.

What are the terms of the debentures being offered by Komo Plant Based Foods?

The debentures bear a 10% interest rate, are convertible into common shares at $0.14 each, and have a 24-month redemption period.

How much money can Komo Plant Based Foods potentially raise from this offering?

Komo can raise up to $1,000,000 from the private placement of 1,000 units.

What rights do the purchase warrants offer in Komo's private placement?

Each warrant allows the holder to acquire one common share at a price of $0.16, valid for 24 months from issuance.