Mr. Alex Blodgett reports
CHINOOK CLOSES $1.5 MILLION CANADIAN DOLLAR SERIES A PRIVATE PLACEMENT
Chinook Tyee Industry Ltd. has completed its Series A non-brokered placement of 10 million common shares at a subscription price of 15 cents per common share, raising $1.5-million, which Chinook intends to use for working capital purposes. All securities issued pursuant to the private placement will be subject to a four-month hold period, which will expire on Oct. 13, 2019.
"Our Series A financing was oversubscribed and we thank investors in Germany and Canada for their support," said Alex Blodgett, chief executive officer of Chinook. "Chinook's insiders invested the maximum level allowed and are excited about developments ahead."
Chinook paid a cash finder's fee of $16,189.25 and issued 107,928 finders' warrants to PI Financial Corp., and paid a cash finder's fee of $19,845 and issued 132,300 finders' warrants to General Research GmbH. Each finder's warrant entitles the holder thereof to acquire one additional common share at a price of 15 cents for a period of six months from the date of issuance.
The private placement constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transactions, as insiders of Chinook subscribed for an aggregate of 2,536,842 common shares for gross proceeds of $380,526. Chinook is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the private placement by insiders did not exceed 25 per cent of the market capitalization of Chinook, as determined in accordance with MI 61-101. Chinook did not file a material change report in respect of the related-party transaction at least 21 days before the closing of the private placement as the details of the participation by related parties of Chinook were not settled until shortly prior to the closing of the private placement.
About Chinook Tyee Industry Ltd.
Chinook is a German-managed investment company with two European subsidiaries, AMP Alternative Medical and Mercury Partners & Company PLC. AMP Alternative's business is to import pharmaceutical-grade (EU-GMP) cannabis produced by Canadian licensed producers into Germany. AMP Alterative, in co-operation with its business partners, will provide EU-GMP audit, logistical, transportation, importation and other related services for the importation of medical cannabis into Germany. Mercury Partners & Company is a Malta-based investment company.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.