Calgary, Alberta–(Newsfile Corp. – December 14, 2020) – RMMI Corp. (CSE: RMMI) (“RMMI” or the “Company“), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce that it has closed its previously announced $2,000.000 non-brokered private placement, raising gross proceeds of CDN$2,731,028 (the “Private Placement“). A portion of the Private Placement included the conversion of $216,002 of principal plus accrued interest held by secured note holders. In connection with the Private Placement, the Company issued a total of 13,655,139 common shares in the capital of the Company (each a “Common Share“) at a price of $0.20 per Common Share. The Company intends to use the net proceeds to complete the buildout of the expansion area in the Company’s 23,400 square foot extraction and processing facility, to purchase additional high capacity extraction and processing equipment and for general corporate and working capital purposes.
The Company paid finder’s fees of 560,560 Common Shares at a deemed price of $0.20 per share, $24,000 in cash and 680,560 finder’s warrants. Each finder’s warrant entitles the holder to acquire a Common Share at an exercise price of $0.20 for a period of 18 months from issuance.
The securities issued by the Company under the Private Placement are subject to restrictions on resale in accordance with applicable securities laws. These restrictions will expire on April 12, 2021. The Private Placement is subject to final acceptance by the Canadian Securities Exchange.
Novus Merchant Partners Inc. acted as financial advisor to RMMI.
About RMMI Corp.
RMMI is a Canadian company licensed, through its subsidiary, to cultivate, produce, process and sell cannabis in various forms. The Company’s vision is to enhance shareholder value by establishing cost leadership in hemp processing and CBD extraction coupled with a global distribution strategy.
Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer
Manish Grigo, Chief Strategy Officer
Certain information set forth in this news release contains forward-looking statements or information (“forward-looking statements“). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Trading in the securities of RMMI should be considered highly speculative.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/70174