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Speakeasy Cannabis Club Ltd
Symbol EASY
Shares Issued 117,685,012
Close 2021-02-10 C$ 0.74
Recent Sedar Documents

Speakeasy arranges $4-million private placement

2021-02-11 00:06 ET - News Release

Mr. Malcolm Davidson reports

SPEAKEASY ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Speakeasy Cannabis Club Ltd. has arranged a non-brokered private placement of up to eight million units of the company at a price of 50 cents per unit for aggregate gross proceeds of up to $4-million. It is expected that this financing will be fully subscribed.

Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire an additional common share at a price of 70 cents for a period of 36 months from the closing of the offering. The units will be made available by way of prospectus exemptions in Canada and in such other jurisdictions as the company may determine and where the units can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.

In connection with the offering, eligible finders will be entitled to receive a cash fee equal to up to 6 per cent of the number of units sold under the offering, as well as finders' warrants, entitling the holder to acquire such number of common shares equal to 6 per cent of the units sold under the offering at an exercise price of 70 cents per common share for a period of 36 months following the date of issuance.

It is anticipated that the proceeds of the offering will be used for working capital, general corporate purposes and the completion of additional indoor grow facilities.

Founder Marc Geen stated: "Completing our indoor production facilities is now possible with this latest investment from our incredible shareholders. Thank you to all who were able to participate. With our indoor flower, now in B.C. and Alberta dispensaries, being well received and completely sold out, the demand for our product far outstrips our current ability to produce. We have always stuck to the concept that producing a high-quality product at a reasonable price will create space on the shelves. Now, with the strong demand for our product, and the sale of all our available indoor flower, the concept proves to be true. We will be using these funds to increase our indoor production from roughly 200 kilograms per month to approximately 1,500 kilograms per month once the expansion is completed in the second quarter of this year. Further, we look forward to reporting the proceeds from these sales in our upcoming quarterly reports. We will also be increasing our preroll and packaging lines for products created from our flower produced both indoor and outdoor. Transitioning into the sales and marketing of our product has been exciting and successful. I am excited to be able to update everyone soon about the results of our efforts."

Closing of the offering is expected to occur on or about Feb. 16, 2021, and is subject to regulatory approval, including that of the Canadian Securities Exchange.

All securities issued in connection with the offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

About Speakeasy Cannabis Club Ltd.

Speakeasy holds a cultivation, processing and amended sales licence issued by Health Canada under the Cannabis Act. Speakeasy owns 290 acres of land in Rock Creek, B.C., and leverages five generations of farming experience in British Columbia, as well as its favourable location to grow and process high-quality cannabis products at low cost. Speakeasy cultivates small-batch, high-quality, craft cannabis at scale in its 63,200-square-foot indoor cannabis complex and has completed its first harvest of its 60-acre outdoor field.

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