Mr. Malcolm Davidson reports
SPEAKEASY CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Speakeasy Cannabis Club Ltd. has closed the first tranche of its previously announced non-brokered private placement for deemed aggregate gross proceeds of $1,306,100. The first tranche closing consisted of the issuance of 3.53 million units of the company at a price of 37 cents per unit.
Each unit consists 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 60 cents for a period of 24 months from closing.
In connection with the completion of the first tranche of the private placement, the company paid cash finders' fees of $78,366
and issued 211,800 non-transferable broker warrants. Each broker warrant entitles the holder to acquire one common share at an exercise price of 60 cents per share for a period of 24 months following closing.
The securities issued by the company under the first tranche of the private placement are subject to restrictions on resale in accordance with applicable securities laws. These restrictions will expire on Dec. 27, 2020. The private placement is subject to final acceptance by the Canadian Securities Exchange.
About Speakeasy Cannabis Club Ltd.
Speakeasy holds a cultivation, processing and 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 currently in its 10,000-square-foot indoor facility and is approaching harvest of its 60-acre outdoor field. The company's intention, upon receipt of an amendment to its current licence, is to include 53,000 square feet of additional indoor cultivation and process area. The total yearly production of cannabis flower and biomass is projected to be in excess of 80,000 kilograms per year.
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