Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) (“Cansortium” or the “Company”), a vertically-integrated cannabis company operating under the Fluent™ brand, today announced the closing of a non-brokered equity private placement. In total, the Company issued 3,571,428 common shares at a price of $0.70 per share for total proceeds of approximately US$2.5 million.
The Company intends to use net proceeds from the private placement for working capital purposes. The Company is in discussion with its lenders on the $71 Million Credit Agreement to amend such agreement. In the event that no agreement is reached on an amendment, the Company would also designate the proceeds from the private placement to the exercise of its equity cure right under the $71 Million Credit Agreement and the calculation of the consolidated interest coverage ratio thereunder. The Company is entitled to exercise its equity cure right for up to two consecutive quarters.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Cansortium in any jurisdiction in which such offer, solicitation or sale would be unlawful.