Mr. Nathan Woodworth reports
JAMES E. WAGNER CULTIVATION ANNOUNCES FINAL CLOSING OF $2.3 MILLION PRIVATE PLACEMENT
James E. Wagner Cultivation Corp. has closed the fourth and final tranche of its previously announced non-brokered private placement of units of the corporation. In the fourth tranche, the corporation issued a total of 2,380,952 units at a purchase price of 21 cents per unit, to raise gross proceeds of $500,000. Each unit comprises one common share of the corporation and one-half of one common share purchase warrant. Each warrant will be exercisable to purchase one common share at an exercise price of 27.5 cents per share for a period of three years following the date of issuance. The units issued under the fourth tranche will be restricted from trading for four months from the date of issuance.
The fourth tranche was part of a larger offering conducted by the corporation which closed in tranches on Dec. 20, 2019, Jan. 27, 2020, Jan. 31, 2020, and Feb. 6, 2020. Pursuant to the offering, the corporation has issued a total of 11,105,474 units for aggregate gross proceeds of $2,332,149.64.
As previously disclosed, in connection with the offering, the corporation paid cash finders' fees to certain finders in an amount of $17,713.50, such amount being equal to 7 per cent of the gross proceeds received from the sale of units by such finders. In addition, certain insiders of the corporation participated in the offering for a total of $837,649.76 worth of units. Participation by those persons constitutes a related party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The issuance of units to the related parties is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(a) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(a) of MI 61-101.
The corporation intends to use the proceeds of the offering for corporate and general working capital purposes and to further develop the corporation's second facility located at 530 Manitou Dr., Kitchener, Ont., including the development of the new farm gate store location.
Closing of the offering is subject to the approval of the TSX Venture Exchange.
About James E. Wagner Cultivation Corp.
James E. Wagner Cultivation's wholly owned subsidiary is a licensed producer under the Cannabis Regulations, formerly the Access to Cannabis for Medical Purposes Regulations (ACMPR). The company is a premium cannabis brand, focusing on producing clean, consistent cannabis using an advanced and proprietary aeroponic platform named GrowthStorm.
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