TORONTO, Sept. 20, 2018 (GLOBE NEWSWIRE) -- North Bud Farms Inc. (CSE: NBUD) (the "Corporation"), is pleased to announce the closing of a non-brokered private placement offering (the "Private Placement") consisting of 3,778,000 units ("Units"), at a price of $0.25 per Unit, for gross proceeds of $944,500. Each Unit is comprised of one Common Share and one-half (1/2) of a Common Share purchase warrant, with each whole warrant entitling the holder hereof to acquire one additional Common Share at a price of $0.40 per Common Share until September 20, 2020. No fees or commissions were paid in connection with the Private Placement. The terms of the Private Placement are the same as the Corporation’s previously-completed private placement (July 25, 2018, as disclosed in the Corporation’s prospectus dated August 21, 2018).
Mr. Andre Audet, the Chairman of the Corporation, participated in the Private Placement by subscribing for 200,000 Units (the "Insider's Participation"). The Insider's Participation is exempt from the formal valuation and minority shareholder approval requirements provided under Multilateral Instrument 61-101 Protection of Minority Holders in Special Transactions ("MI 61-101") in accordance with sections 5.5(a) and 5.7(a) of MI 61-101. The exemption is based on the fact that neither the fair market value of the Insider’s Participation nor the consideration paid by such insider exceeds 25% of the Corporation’s market capitalization. The Corporation did not file a material change report at least 21 days prior to the completion of the Private Placement since the Insider's Participation was not determined at that moment.
The Corporation intends to use the proceeds of the Private Placement to continue to advance the license application of GrowPros MMP Inc. under the Access to Cannabis for Medical Purposes Regulations (ACMPR) and for general working capital purposes.
The securities acquired by the subscribers are subject to a hold period of four months plus one day from the closing date, ending on January 21, 2019, except as permitted by applicable securities legislation.
About North Bud Farms Inc.
North Bud Farms Inc., through its wholly-owned subsidiary GrowPros MMP Inc. which was acquired from Tetra Bio-Pharma Inc. (TSX-V: TBP) (OTCQB: TBPMF) in February 2018, is pursuing a license under the Access to Cannabis for Medical Purposes Regulations (ACMPR). North Bud Farms will be constructing a state-of-the-art purpose-built cannabis production facility located on 95 acres of Agricultural Land in Low, Quebec. North Bud Farms will be focused on Pharmaceutical and Food Grade cannabinoid production in preparation for the legalization of edibles and ingestible products scheduled for October 2019.
For more information visit: www.northbud.com
Neither the Canadian Securities Exchange (the “CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Certain statements included in this press release constitute forward-looking information or statements (collectively, “forward-looking statements”), including those identified by the expressions “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts but reflect current expectations regarding future results or events. This press release contains forward- looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors. Such risks and uncertainties include, among others, the risk factors included in North Bud Farm’s final long form prospectus dated August 21, 2018 which is available under the issuer’s SEDAR profile at www.sedar.com.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
North Bud Farms Inc.
Edward Miller
VP, IR & Communications
Office: (855) 628-3420 ext. 3
investors@northbud.com