Business
North Bud Farms Arranges Private Placement Financing and Provides Corporate Update
North Bud Farms Arranges Private Placement Financing and Provides Corporate Update.
About this update from North Bud Farms Inc
[{"type":"text","content":"\n- Insiders of NORTHBUD have Committed $1 Million as Lead Order\n THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. TORONTO, May 15, 2019 (GLOBE NEWSWIRE) -- North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) (\"NORTHBUD\" or the \"Company\") announces a non-brokered private placement of up to 13,333,333 units, at a price of $0.30 per unit, for gross proceeds of up to $4 million. Each unit will be comprised of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional share at a price of $0.40 for a period of 24 months from the date of closing of the offering. Insiders of the Company have demonstrated their commitment to the continued success of the Company by committing to a lead investment of $1 million in the proposed offering. The Company plans to use the net proceeds of the offering to hire additional staff for its Canadian operations, pursue M&A opportunities in the United States, including new state license applications, and for general working capital purposes. “These funds will be essential to fund ongoing acquisition efforts in the United States and prepare our Canadian production facility for operations,” said Ryan Brown, CEO of North Bud Farms. The offering is expected to be completed on or before May 31, 2019, subject to the receipt of all necessary regulatory approvals. All securities issued pursuant to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws. As mentioned, certain directors, officers and other insiders have committed to participate in the offering. Accordingly, any such participation would be considered a \"related party transaction\" under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on the exemptions from the formal valuation requirements and majority of the minority shareholder approval requirements of MI 61-101 contained in Section 5.5(a) and Section 5.7(1)(a) in respect of any such related party transaction on the basis that the fair market value of the transaction does not exceed more than 25% of the Company’s mark...