BC Craft Supply Co. Closes Private Placement
VANCOUVER, British Columbia, June 25, 2020 (GLOBE NEWSWIRE) — BC Craft Supply Co. Ltd. (the “Company” or “BC Craft”) (CSE: CRFT) (FSE: ZZD1) is pleased to announce that it has closed a non-brokered private placement for a total of 34,209,639 units (the “Units”) of the Company at a price of $0.05 per Unit for gross aggregate proceeds of $1,710,482 (the “Private Placement”). Each Unit consists of one (1) common share (each a “Common Share”) and one-half (1/2) of one transferable common share purchase warrant (with two half warrants being a “Warrant”). Each whole Warrant entitles the holder thereof to purchase one (1) additional Common Share per Warrant at a price of $0.10 for a period of eighteen (18) months from closing.
The Warrants are subject to an accelerated expiry whereby should the 20-day volume weight average price of the Common Shares, as traded on the Canadian Securities Exchange, be equal to or greater than $0.275 prior to the expiry date of the Warrants, the Company may accelerate the expiry date (“Accelerated Expiry Date”) of the Warrants by providing the holder with notice (the “Acceleration Notice”) of its election to do so. The Accelerated Expiry Date referenced in an Acceleration Notice may be no earlier than the 15th day from the date on which such Accelerated Expiry Date is delivered to the holder.A finder’s fee of $54,400 cash, 800,000 Common Shares and 308,000 Warrants were issued on the same terms note above to two qualified party. Gross proceeds raised from private placement will be used for general working capital and corporate purposes. All securities issued are subject to a four (4) month hold period that expires on October 25, 2020.Three director of the Company participated in the Private Placement and will acquire, directly or indirectly, an aggregate of 4,611,900 Units. The participation by the insiders in the Private Placement is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61- 101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of the Company’s market capitalization.For further information please contact Matthew Watters, Director, at (604) 687-2038.About BC Craft Supply Co.Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada’s craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most talented cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada. BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Pasha disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.