Sunniva Announces Closing of CAD $4.3 Million Short Term Bridge Financing

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Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services, is announcing and closing a non-brokered private placement (the “Offering“) of CAD $4,300,000 for a total of 4,300,000 units of the Company (“Units“). Proceeds of the Offering will be used to provide short term working capital for operations at the Company’s extraction facility in California, purchase of additional biomass inventory, capital costs at the Sunniva California Campus and general corporate purposes. Each Unit consists of a principal amount of unsecured promissory notes of the Company (“Promissory Notes“) and common share purchase warrants of the Company (“Warrants“). The closing included an insider of the Company subscribing, directly or indirectly, for CAD $1,000,000 for a total of 1,000,000 Units which demonstrates management and insiders’ commitment to the Company. The Company anticipates holding a secondary closing of the Offering within the next 10 days.

The Units issued under the Offering have the following terms:

Promissory Notes

  • Maturity:

The earlier of (i) two business days following receipt by the Company of proceeds from the sale of any or all of the Company’s Canadian assets following the closing date, which, in the aggregate, are equal to or greater than the proceeds of the Offering; and (ii) 6 months from the closing date. 

  • Interest Rate:

10% (annual rate).

Warrants

  • Number of Warrants:

0.1897 Warrants per Unit (each Warrant entitles the holder to acquire one common share of the Company at the Warrant Exercise Price).

  • Warrant Exercise Price:

CAD $5.27 per Warrant.

  • Warrant Term:

24 months from closing.

A finder’s fee of 5% payable in cash was paid to certain investment advisors for introducing certain purchasers of Units to the Company.

The Promissory Notes and Warrants have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Promissory Notes or Warrants in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

For more information please visit: www.sunniva.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE Sunniva Inc.