PlantX Announces $10 Million Debt Financing
PlantX Life Inc. (OTCQB: PLTXF) has secured a debt financing of up to $10 million from an arm's length creditor, replacing its previously announced private placement. The financing, structured as a secured convertible promissory note, offers an interest rate of 5.0% per annum and matures on May 1, 2024. The proceeds will be used for working capital and general corporate purposes. This financing is expected to better align with shareholders' feedback, aiding the company's growth strategies in the plant-based product space.
- Secured $10 million in debt financing at attractive terms.
- Interest rate of 5.0% per annum, which is favorable for cash flow management.
- Financing replaces a previously announced private placement, indicating a strategic shift based on shareholder feedback.
- Convertible Note cannot exceed 10% beneficial ownership, limiting share conversion potential.
- The financing hinges on a minimum advance of $250,000, potentially restricting immediate liquidity.
Capital Secured at Favourable Terms
Replaces Previously Announced Private Placement
VANCOUVER, BC, July 26, 2022 /PRNewswire/ - PlantX Life Inc. (CSE: VEGA) (Frankfurt: WNT1) (OTCQB: PLTXF) ("PlantX" or the "Company") today announced that it has obtained debt financing whereby it may borrow a principal amount of up to
"We listened to the feedback of shareholders, and have secured financing at attractive terms that is a more appropriate way for PlantX to fund its operations and plans," said PlantX CEO, Lorne Rapkin.
The Convertible Note will bear interest at rate of
The Holder may, at any time up to and including the Maturity Date, convert, in whole or in part, the then outstanding principal and accrued and unpaid interest (the "Eligible Conversion Amount") into common shares of the Company ("Common Shares") at a conversion price equal to the closing trading price of the Common Shares on the Canadian Securities Exchange (the "CSE") on the last trading day immediately prior to the delivery of a written conversion notice by the Holder, provided that the in no event shall the conversion price per Common Share be less than
Additionally, in the event the ten (10) day volume weighted average trading price of the Common Shares on the CSE is greater than
Notwithstanding the foregoing, the Convertible Note shall not be permitted to be converted by either the Holder or the Company, whether in whole or in part, where such conversion results in the Holder having beneficial ownership of, or control or direction over, whether direct or indirect, or any combination thereof, equal to or more than
The securities issued in connection with the Convertible Note are subject to a four-month hold period, in accordance with applicable Canadian securities laws.
As the digital face of the plant-based community, PlantX's platform is the one-stop shop for everything plant-based. With its fast-growing category verticals, the Company offers customers across North America more than 5,000 plant-based products. In addition to offering meal and indoor plant deliveries, the Company currently has plans underway to expand its product lines with its own Juice and Coffee companies -- but the business is not limited to an e-commerce platform. The Company uses its digital platform to build a community of likeminded consumers and, most importantly, to provide education. Its successful enterprise is being built and fortified on partnerships with the top nutritionists, chefs and brands. The Company eliminates the barriers to entry for anyone interested in living a plant-based lifestyle and thriving in a longer, healthier and happier life.
Connect with PlantX: Email | Website | Facebook | LinkedIn | Twitter | Instagram | YouTube | TikTok
This press release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may," "will," "expect," "likely", "should," "would," "plan," "anticipate," "intend," "potential," "proposed," "estimate," "believe" or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. The forward-looking information contained herein includes, without limitation, statements regarding the use of proceeds from the Convertible Note and the issuance of Common Shares pursuant to the conversion of the Convertible Note in accordance with the terms and conditions thereof.
By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release including, without limitation; the Company's ability to comply with all applicable governmental regulations including all applicable food safety laws and regulations; impacts to the business and operations of the Company due to the COVID-19 epidemic; the conflict in eastern Europe; having a limited operating history; the ability of the Company to access capital to meet future financing needs; the Company's reliance on management and key personnel; competition; changes in consumer trends; foreign currency fluctuations; and general economic, market or business conditions.
Additional risk factors can also be found in the Company's continuous disclosure documents, which have been filed on SEDAR and can be accessed at www.sedar.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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SOURCE PlantX Life Inc.
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