Business
Coho Announces Amended Terms for Acquisition of Purebread and Equity Financing
Vancouver, British Columbia--(Newsfile Corp. - September 12, 2023) - Coho Collective Kitchens I...
About this update from Purebread Brands Inc.
[{"type":"text","content":"Coho Announces Amended Terms for Acquisition of Purebread and Equity FinancingVancouver, British Columbia--(Newsfile Corp. - September 12, 2023) - Coho Collective Kitchens Inc. (TSXV: COHO) (\"Coho\" or the \"Company\") is providing an update today on the acquisition of Purebread. Bakery Inc. (\"Purebread\") that was previously announced on May 29, 2023 (the \"Acquisition\"). As announced on August 31, 2023, the Acquisition, a strategic move expected to bolster Coho's market presence, is now expected to close on or before September 19, 2023. Coho is also pleased to announce today that Purebread's existing owners (collectively, the \"Purebread Vendors\") have also agreed to receive a portion of the purchase price for Purebread in the form of a $1.5 million Vendor-Take-Back note (the \"VTB Note\") issued by Coho Acquisition Corp. (the \"Purchaser\"). The VTB Note was negotiated between Coho and the Purebread Vendors to ensure a seamless transition and continued growth of Purebread following the date of the concurrent closings of the Offering (defined below) and Acquisition (the \"Closing Date\"). This amendment to the terms of the Acquisition demonstrates the confidence of the Purebread Vendors in the future success of Purebread following the Closing Date. It also better aligns the interests of the Purebread Vendors with those of Coho and its shareholders. Further to Coho's previous announcement on July 31, 2023, Coho has also filed a new offering document (the \"Offering Document\") dated September 12, 2023, to replace for all intents and purposes the offering document filed and announced on July 31, 2023, which was set to expire on September 14, 2023. Updated Equity FinancingThe Company is conducting a new brokered private placement of up to 35,294,117 units of the Company (\"Units\") at a price of $0.17 per Unit (the \"Issue Price\"), for aggregate gross proceeds of up to $6,000,000 (the \"Offering\"). This Offering replaces for all purposes the offering announced by the Company on July 31, 2023, in order for the Company to make the Offering of Units to purchasers resident in Canada, except Quebec, pursuant to the listed issuer financing exemption (the \"Listed Issuer Financing Exemption\") under Part 5A of National Instrument 45-106 - Prospectus Exemptions (\"NI 45-106\"), subject to compliance with applicable regulatory requi...