Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF) announces that it closed a debenture unit financing to an arm’s-length investor on a private placement basis.
The Debenture is not convertible, unsecured and bears interest at the rate of 7% per annum. The principal amount of the Debenture and accrued interest is payable on April 1, 2022 (the “Maturity Date”).
The Company intends to utilize the proceeds from the Private Placement for the following:
1) The expansion of its Platinum Vape business as it prepares for its launch in Arizona;
2) Funding certain pre-closing operational plans for its previously announced acquisition of a THC Cultivation Center License and Associated Assets in Illinois;
3) General corporate and working capital.
The Debenture Unit consists of a USD $6,120,000 principal amount of debenture (the “Debenture”) and 1,000,000 common share purchase warrants (the “Warrants”) netting the Company approximately US $6,000,000 after fees and expenses. Each Warrant is exercisable into one common share of the Company at a price of CDN$1.20 for a period of 2 years from the date of issuance. All securities issued in connection with the Private Placement will be subject to a four-month hold period under securities laws.
