Business
CB2 Insights Announces Closing of Upsized and Oversubscribed Private Placement
CB2 Insights Announces Closing of Upsized and Oversubscribed Private Placement.
About this update from Skylight Health Group Inc.
[{"type":"text","content":"\n TORONTO, Sept. 25, 2020 (GLOBE NEWSWIRE) -- CB2 Insights Inc. (“CB2” or the “Company”) (CSE: CBII; OTCQB: CBIIF), one of the largest integrative healthcare systems in the United States, is pleased to announce that it has upsized and closed its previously announced non-brokered private placement financing (the \"Placement\") of units of the Company (the \"Units\") led by Merida Capital Partners. The Company issued 34,253,641 Units at an issue price of C$0.15 per Unit (the \"Issue Price\") for gross proceeds to the Company of C$5,138,046.15. Each Unit is comprised of one common share of CB2 (a “Share”) and one half of one common share purchase warrant (each whole warrant a “Warrant“). Each Warrant is exercisable to acquire one additional Common Share at an exercise price of $0.20 for a period of twenty-four (24) months following the closing date of the Offering. The Company paid finder’s fees in the aggregate amount of $155,065.99 and issued an aggregate of 1,333,778 warrants (the “Finder Warrants) to certain parties in connection with the Offering. Each Finder Warrant entitles the holder to purchase one Share at an exercise price of $0.20 for a period of twenty-four (24) months following the closing date of the Offering. The Company plans to use the net proceeds from the Placement for working capital purposes and strategic M&A activities. Prad Sekar, Chief Executive Officer of CB2 stated, “The significant upsizing of this placement from the original $3 million announced on September 3, 2020, is a tremendous vote of confidence in the company and our strategy. While organic growth remains one of the key legs in our three-pronged growth strategy, our existing infrastructure, management expertise and unique business model of technology overlay on traditional primary care services in the Unites States offers excellent potential for highly accretive acquisitions. We are confident that the proceeds of this placement will further accelerate our growth going forward.” The Offering is considered a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101”) as Peter Cummins, a director of the Company, subscribed for 250,000 Units pursuant to the Offering. Such related party transaction is exempt from the formal valuati...