Mr. Jeff Maser reports
TINLEY ANNOUNCES CLOSING OF $5,055,000 BROKERED PRIVATE PLACEMENT OF UNITS CO-LED BY CANACCORD GENUITY AND GRAVITAS SECURITIES
The Tinley Beverage Company Inc. has closed its previously announced brokered private placement of units, pursuant to an agency agreement dated April 6, 2018, with Canaccord Genuity Corp. and Gravitas Securities Inc., raising gross proceeds of $5,055,000. Pursuant to the offering, Tinley sold an aggregate of 5,055,000 units for aggregate gross proceeds of $5,055,000. Each unit was issued at a price of $1 and comprised one common share of the company and one common share purchase warrant of the company. Each warrant is exercisable to acquire one common share of the company for a period of 24 months following the closing date at an exercise price of $1.35 per common share. The company intends to use the net proceeds from the offering for expansion beyond California, beverage marketing, acquisitions and working capital.
In consideration of the services by the agents in connection with the offering, the agents received an aggregate cash commission of $404,400. Additionally, the agents received options to acquire 404,400 units exercisable for a period of 24 months from the closing date at an exercise price of $1 per agents' unit option. Each agents' unit option entitles the agents to acquire one common share and one warrant, exercisable into one common share at $1.35 for a period of 24 months from the closing date. The agents also received a corporate finance fee, payable in 202,200 units, with each agents' fee unit comprising one common share and one warrant exercisable into one common share at $1.35 for a period of 24 months following the closing date.
All securities issued or issuable pursuant to the offering are subject to a hold period of four months and one day.
About The Tinley Beverage Company
Tinley Beverage (Toronto, Canada) manufactures a line of liquor-inspired, alcohol-free, cannabis-infused beverages for use in California. Tinley also manufactures the Hemplify and Tinley's Tonics product lines, which are available in 100-plus retail locations in California and on-line throughout the United States. Hemplify is a line of fruit-flavoured, sugar-free, vegan, drinkable supplements that contain hemp stalk extract. This extract contains terpenes and other phytoconstituents.
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