Dr. Arup Sen reports
SPROUTLY COMPLETES FINANCING
Further to the news release dated March 15, 2021, Sproutly Canada Inc. has closed the second and final tranche of its financing. Under the final tranche of the private placement, the company issued 15,916,037 units of the company at a price of five cents per unit for gross proceeds of approximately $795,802, with each unit consisting of one common share and one non-transferable common share purchase warrant. Each warrant entitles the holder to acquire an additional common share at an exercise price of seven cents for a period of two years from the date of issue.
All securities issued in connection with the private placement are subject to a four-month-and-a-day transfer restriction from the date of issuance. The placement was completed for the purposes of supporting the company's general working capital. The private placement is subject to the approval of the Canadian Securities Exchange.
In connection with the private placement, in consideration for services, the company paid finders' fees in the amount of $22,500 through the issuance of 450,000 units on the same terms as described above.
Under the private placement, Dr. Arup Sen, chief executive officer and director of the company, purchased three million units through a company controlled by Dr. Sen. His participation is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the private placement, nor the consideration to be received for those securities, insofar as the private placement involves the insider, exceeds $2.5-million. The company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.
About Sproutly Canada Inc.
Sproutly's core objective is to become the leading supplier of unique ingredients and customized formulations to the cannabis beverage and edibles market. Its natural water-soluble Infuz2O and BioNatural Oils will deliver revolutionary brands to international markets that are striving to produce diverse portfolio of differentiated consumer products. Sproutly's business focus is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing, and support distribution networks to deliver this scientific breakthrough with speed and efficiency worldwide.
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