THC Therapeutics Has Entered Into Agreement for up to $50 Million in Funding With a Private Equity Firm for M&A in the Cannabis Industry

Rhea-AI Summary

THC Therapeutics, Inc. (THCT) has secured an agreement with Shefford Capital Partners for up to $50 million in funding aimed at acquisitions in the cannabis and alternative therapies sectors. The deal includes $25 million in restricted shares and $25 million in debt financing. This capital will support THCT's strategy to acquire established companies within the cannabis industry and modern healthcare. The favorable terms, akin to those available to larger market-listed firms, mark a significant advancement for THCT and its mission to become a leader in cannabis and health-related mergers and acquisitions.

Positive

• Secured up to $50 million in funding for acquisitions.
• Favorable share purchase terms, typically available only to NASDAQ/NYSE companies.
• Strategic focus on established, revenue-generating acquisition candidates in cannabis and healthcare sectors.

Negative

• The dependency on Shefford Capital's ongoing investment could pose risks if future financing does not materialize.

Groundbreaking Leap Forward in THCT's New Business Plan.

LAS VEGAS, NV / ACCESSWIRE / September 10, 2021 / THC Therapeutics, Inc. (THCT), a forward-thinking, publicly-traded technology company, whose mission statement is, "Better Health through the Science of Nature," has entered into an agreement to secure up to $50 million in funding with Shefford Capital Partners for acquisitions in the cannabis, alternative therapies and modern health space.

After numerous meetings, an agreement has been entered between THC Therapeutics and Shefford Capital Partners ("Shefford Capital") for Shefford Capital to purchase up to $25 million in restricted shares of company stock over multiple closings, and for Shefford Capital to arrange for the company to receive $25 million in debt financing, all of the proceeds of which will be used for the implementation of an acquisition strategy in the cannabis industry, psychedelic medicine space, and/or with respect to companies providing cutting-edge healthcare related products and services. Shefford Capital Partners is a private equity firm presently managing over $250 million in capital. This arrangement represents a monumental leap forward in THC Therapeutics' business plan. As per THC Therapeutics' discussions with Shefford Capital, the company plans to add two additional members to its board of directors, one appointed by Shefford Capital and another to be determined and agreed upon by both Shefford Capital and the company at a later date. Additionally, each acquisition is required to be approved by both THCT and Shefford.

The terms for the share purchases by Shefford Capital are very favorable in the company's opinion; this type of financing is usually only available for NASDAQ/NYSE listed companies in THCT's view. The terms of the agreement are as follows:

1. All shares will be issued at the closing price of the THCT's common stock on the day each acquisition closes or the date each acquisition is announced, whichever is earlier. All shares issued to Shefford pertaining to the agreement will be restricted securities and are not required to be registered with the SEC either before or after issuance.
2. The debt portion of this financing will be arranged by Shefford Capital as a $25 million debt facility for THC Therapeutics. The debt will be in the form of traditional (non-toxic) debt to position the company with a 1:1 debt to equity ratio.

THC Therapeutics is now actively seeking established, revenue-generating acquisition candidates in the marijuana industry. In addition to the cannabis space, THCT is also looking for opportunities in psychedelics, integrative medicine and other modern healthcare-related industries. These acquisitions will be strategically selected as part of THCT's plan to develop as a hands-on, seed-to-sale company with a focus on cultivation, dispensaries and value-added cannabis products.

"It just made absolute sense for my firm to provide the war chest for THC Therapeutics to execute the plan we have developed together," said Jonathan Cross, Shefford Capital Partners' Managing Director, and THC Therapeutics' CFO. Mr. Cross continued, "Not only does the company now have an investor committed to its long term success, it also has access to Shefford's vast resources."

Brandon Romanek, the Founder & CEO, stated, "I feel that Jonathan and I are very like minded individuals, we are on the same page with regards to our drive to make a difference in the world. Our efforts, and what we are trying to accomplish is not driven by financial gain alone, rather by our ambition to prove that a company from the OTC space can operate just like a company listed on a major exchange."

Mr. Romanek went on to say, "Initially, when I brought Therapeutics public, it was for two reasons. The first reason was to develop the dHydronator® and bring it to market, and the second was to establish a company which would be ideally positioned to acquire companies in the cannabis industry and modern healthcare space. Having entered into an agreement to secure up to $50 million in capital for acquisitions is an absolute game changer for the company I founded! I'm not aware of any other OTC company in the US which has access to funding comparable to NASDAQ/NYSE companies. It's not the capital alone, but the agreement and strategy as a whole, which is I consider remarkable for THC Therapeutics and our shareholders."

About THC Therapeutics Inc
Home | THC Therapeutics, Inc.

THC Therapeutics, Inc. (THCT) is actively focused on developing into the foremost consolidation catalyst in the cannabis industry and modern healthcare space via mergers and acquisitions. The company is presently developing their patented dHydronator®, a sanitizing herb dryer. The main function of the dHydronator® is to greatly accelerate the drying time of cannabis while sanitizing it. The dHydronator® can be used to dry a variety of herbs; it has been specifically tested for use with cannabis, and it can reduce the drying time for cannabis from 10-14 days to less than 14 hours. The Company is seeking partnerships in the Cannabis & Health/Wellness industries in the United States & Canada. For more information on becoming a candidate for acquisition, contact us directly at mna@thct.io.

Any statements that are not historical facts contained in this press release are "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the cannabis industry, the performance of management, actions of government regulators and vendors, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our filings with the Securities and Exchange Commission ("SEC"). We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

Investor Contact:
Jon Olson
jon@milestonemanagementservicesllc.com
702-217-9518
https://milestonemanagementservicesllc.com

Acquisition Candidate Contact:
mna@thct.io
833-420-THCT (8428)

SOURCE: THC Therapeutics, Inc

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FAQ

What is THCT's recent funding announcement about?

THCT announced securing up to $50 million in funding with Shefford Capital Partners for acquisitions in the cannabis and alternative therapies sectors.

How will THCT use the $50 million funding?

The funding will primarily be used to implement an acquisition strategy in the cannabis industry and modern healthcare sectors.

What are the funding terms for THCT's agreement with Shefford Capital?

The terms include $25 million in restricted shares and $25 million in traditional debt financing.

What type of companies is THCT looking to acquire?

THCT is seeking established, revenue-generating companies in the cannabis and psychedelic medicine industries.

When was the funding agreement between THCT and Shefford Capital announced?

The agreement was announced on September 10, 2021.