Komo Plant Based Foods Announces Closing of Private Placement of $0.14 Units

Rhea-AI Summary

Komo Plant Based Foods Inc. has successfully closed a non-brokered private placement financing valued at $1,080,252, priced at $0.14 per unit. Each unit consists of one common share and one warrant, allowing the purchase of an additional share at $0.20 within 24 months. Previously, on February 11, the company raised $981,208 through the issuance of 7,008,625 units, along with a conversion of $99,044 of debt to 707,458 units. The proceeds will support operations and expansion in Canada and the U.S.

Positive

• Successfully raised $1,080,252 through a non-brokered private placement.
• Plans to use proceeds for operational expansion in Canada and the U.S.
• Issued a total of 7,716,110 units in the financing and debt conversion.

Negative

• Related party participation in financing could raise concerns about conflicts of interest.

VANCOUVER, BC / ACCESSWIRE / February 17, 2022 / Komo Plant Based Foods Inc. (CSE:YUM)(OTCQB:KOMOF)(FRA:9HB) ("Komo" or the "Company") announces closing of a non-brokered private placement financing with a total value of $1,080,252 at a price of $0.14 per unit (each, a "Unit"). Each Unit issued in the Placement consisted of one common share of the Company (each, a "Share") and one share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder thereof to purchase one Share at a price of $0.20 per Share for a period of 24 months from the date of issuance.

On February 11, 2022, the Company completed a private placement issuing 7,008,625 Units for gross proceeds of $981,208 (the "Placement") and the Company issued 707,458 Units on February 16, 2022 to convert an aggregate amount of $99,044 of debt owing to consultants of the Company (the "Debt Conversion"). The total amount of Units issued pursuant to the Placement and Debt Conversion is 7,716,110. $200,000 of the proceeds raised in the Placement were from a related party.

The Company paid finder's fees to an arm's length party that introduced the Company to subscribers participating in the Placement (the "Finder") equal to 8% cash and 8% finder's warrants with each finder's warrant exercisable into a Share at $0.14 per Share ("Finder's Warrants"). The Company paid Finder's Fees of $20,000 and issued 142,857 Finder's Warrants.

All securities issued in connection with the Placement are subject to a four-month and one day hold period in Canada from the date of the issuance of that security (the "Hold Period"). The securities are restricted from trading during the Hold Period.

The Company intends to use the net proceeds of the Placement for operations and expansion across Canada and the United States.

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 biteTM. 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 Chickenless 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. All of our products are 100% plant-based, made with wholesome ingredients, free from preservatives, and frozen for freshness. Freezing products is a natural and effective way of keeping food products for longer without having to use any preservatives. Komo's meals have a 1-year frozen shelf life. Komo also sells ready-to-eat meals in Metro Vancouver through Uber Eats and Skip the Dishes.

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

For further information, please contact:

William White, President & CEO, Komo Plant Based Foods Inc.
will@komoeats.com
1-866-969-0882

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

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 forwardlooking 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 launch its products on food delivery apps, its ability to retain key personnel, its revenues, and its expectation as to the acceptance of its products by retailer stores and 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/689244/Komo-Plant-Based-Foods-Announces-Closing-of-Private-Placement-of-014-Units

FAQ

What was the total value of Komo's recent private placement financing?

Komo announced a total value of $1,080,252 from the private placement.

What is the price per unit for the private placement by Komo?

Each unit was priced at $0.14.

What will Komo use the proceeds from the private placement for?

The proceeds will be used for operations and expansion across Canada and the U.S.

How many units did Komo issue in its private placement?

Komo issued a total of 7,716,110 units from the placement and debt conversion.

What is the exercise price of the warrants issued by Komo?

The warrants allow the purchase of a share at $0.20 per share.