Sativa Wellness Announces Proposed Financing and Dispute Settlement

Rhea-AI Summary

Sativa Wellness Group plans to conduct a non-brokered private placement financing of up to CDN$4,000,000 at CDN$0.07875 per unit, each consisting of one share and a half warrant, exercisable for 24 months at CDN$0.105. Proceeds will support the expansion of its wellness health screening services, including COVID swabbing and blood testing. Additionally, the company's subsidiary, Borganic Consulting, reached a settlement with Dragonfly Biosciences for a supply agreement for CBD. Executive Chairman Geremy Thomas emphasizes the financing will accelerate national expansion.

Positive

• The private placement financing could raise up to CDN$4,000,000 to support business expansion.
• The funds will be used for operational enhancements in health screening services, potentially increasing revenue generation.
• The settlement with Dragonfly Biosciences secures a commercial arrangement for CBD supply, which may enhance product offerings.

Negative

• The financing dilutes existing shareholder equity through the issuance of new shares and warrants.

VANCOUVER, BC / ACCESSWIRE / February 24, 2021 / Sativa Wellness Group Inc. (CSE:SWEL) ("Sativa Wellness" or the "Company") announces that it intends to complete a non-brokered private placement financing (the "Financing") of units (each, a "Unit") for gross proceeds of up to CDN$4,000,000 with a price per Unit of CDN$0.07875.

Each Unit will consist of one common share (each, a "Share") and one half of one common share purchase warrant (each, a "Warrant"), with each Warrant exercisable to acquire one additional Share (each, a "Warrant Share") for a period of 24 months following the closing date of the Financing (the "Closing Date'). The Warrants shall have an exercise price of CDN$0.105 per Warrant Share. The Warrants are not subject to any acceleration clause.

Sativa Wellness will pay finder's fees (the "Finders Fee") in connection with the Financing to Canaccord Genuity Corp. ("Canaccord"). The Finders Fee will consist of 8% of the Financing in cash (the "Cash Commission") and 8% of the Financing in Warrants. The Cash Commission is payable in cash or units, at Canaccord's option.

The money raised will be used for working capital and investment across the whole wellness business. In particular, it will be used to invest in Sativa's newest wellness service of health screening to include COVID swabbing and blood testing. The clinic model now proven to generate income will benefit from investment in the infrastructure to support an even wider rollout of testing centres across the UK. It will provide additional marketing capital to raise the profile of the new services as well as money to invest in mobile clinics, staff and clinical standards.

Sativa Wellness is pleased to announce that the Company's wholly owned subsidiary, Borganic Consulting Inc., has reached a settlement with Dragonfly Biosciences Limited. The settlement includes an ongoing commercial arrangement for the supply of CBD.

Geremy Thomas, Executive Chairman, said: "New funds raised will speed up the national reach planned for our wellness health screening division."

On behalf of the Board of Directors,

Geremy Thomas Executive Chairman of the Board of Directors Sativa Wellness Group Inc. +44 (0) 20 7971 1255 enquiries@sativawellnessgroup.com www.sativawellnessgroup.com

Neither the Canadian Securities Exchange nor its Market Regulator (as defined in the policies of the Canadian Securities Exchange) accept responsibility for the adequacy or accuracy of this release.

This news 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 United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" "plan is" or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur", "will be achieved" or "shortly". The forward-looking information and forward-looking statements contained herein include, but are not limited to information concerning the benefits to the clinic model and the infrastructure benefits of investments and the ability to speed up a national roll out.

Although Sativa Wellness 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. In particular, there is no guarantee that the clinic model will benefit from investment, and the infrastructure benefits will be achieved any cost synergies will be realized, that the national reach will be accelerated, or that Borganic will realize any revenue from the sale of CBD to Dragonfly. The forward-looking information and forward-looking statements contained in this news release are made as of the date of this press release, and Sativa 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.

SOURCE: Sativa Wellness Group Inc.

View source version on accesswire.com:
https://www.accesswire.com/631621/Sativa-Wellness-Announces-Proposed-Financing-and-Dispute-Settlement

FAQ

What is Sativa Wellness Group planning with the financing?

Sativa Wellness Group intends to raise up to CDN$4,000,000 through a private placement to support its wellness health screening services.

What are the terms of the warrants issued in the financing by Sativa Wellness Group?

Each warrant can be exercised to acquire one additional share for CDN$0.105 within 24 months of the financing's closing date.

What will the funds raised from the financing be used for?

The funds will be utilized for working capital and investments, particularly in expanding health screening services across the UK.

What settlement did Sativa Wellness Group reach with Dragonfly Biosciences?

Sativa Wellness's subsidiary, Borganic Consulting, reached a settlement with Dragonfly Biosciences, including an ongoing commercial supply agreement for CBD.

How will the financing impact current shareholders of Sativa Wellness Group?

The financing may dilute existing shareholder equity due to the issuance of new shares and warrants.