Lifeist Wellness Closes Second Tranche with Alumina Partners to Support Mikra’s U.S. Distribution through GNC Stores
TORONTO, Feb. 01, 2023 (GLOBE NEWSWIRE) — Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: NXTTF), a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, today announced that it has completed a second tranche under its previously announced draw-down equity facility with Alumina Partners (Ontario) Ltd. (“Alumina”), an affiliate of New York-based private equity firm Alumina Partners, LLC. Gross proceeds to Lifeist were approximately $260,335.
“This equity growth capital will help facilitate a successful and timely launch of Mikra’s U.S national distribution agreement with health and wellness retail giant GNC over the coming months,” commented Meni Morim, Lifeist’s Chief Executive Officer. “Alumina is an important partner, having expressed a meaningful vote of confidence in Lifeist and especially our nutraceutical initiatives at Mikra, and providing us with access to capital in a flexible structure that allows us to maintain our debt-free balance sheet.”
Added Faraaz Jamal, CEO of Mikra and COO of Lifeist, “We recently commenced commercial scale production of a new and improved version of CELLF. We are privileged to have the support of partners like Alumina to help bring us one step closer to making CELLF available to our customers.”
“We view the GNC CELLF distribution deal as a potential game changer for Lifeist,” said Adi Nahmani, Managing Member of Alumina Partners. “We are delighted to see management advancing multiple simultaneous product opportunities, such as their upcoming functional nutrition bar line, and are excited to support the company to continue to execute on all available fronts.”
As previously announced, Lifeist and Alumina Partners entered into an equity financing facility of up to $8 million. Lifeist has the ability to draw down capital on an as-needed basis, minimizing dilution.
In connection with the closing of the second tranche under the equity facility, Lifeist issued a total of 4,628,177 units at a price of $0.05625 per unit for gross proceeds of $260,335. Each unit consisted of one common share of Lifeist and one transferable share purchase warrant with each warrant exercisable to acquire one additional common share at a price of $0.09375 for a period of three years. The warrants are subject to an acceleration provision that allows the Company to give notice of an earlier expiry date if the 10-day volume weighted average price of the Company’s common shares on the TSXV is equal or greater than $0.1875. The securities are subject to a hold period expiring on June 1, 2023. The proceeds of this second tranche will be used for general corporate purposes, including growth investments for the Mikra nutraceuticals business.
There are no standby charges or other upfront fees associated with the equity financing facility. Each tranche of units issued under the equity financing facility is subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary four-month hold period.
About Lifeist Wellness Inc.
Sitting at the forefront of the post-pandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards; CannMart Labs, a BHO extraction facility for the production of high margin cannabis 2.0 products; Australian Vapes, Australia’s largest online retailer of vaporizers and accessories; and Mikra, a biosciences and consumer wellness company bringing to market innovative therapies for cellular health.
Information on Lifeist and its businesses can be accessed through the links below:
Meni Morim, Lifeist Wellness Inc., CEO
Matt Chesler, CFA, FNK IR, Investor Relations
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen.
The forward-looking information contained herein, including, without limitation, statements related to the anticipated launch of the GNC CELLF distribution agreement and any further drawdowns under the Investment Agreement are made as of the date of this press release and is based on assumptions management believed to be reasonable at the time such statements were made, including, without limitation, its ability to successfully launch and fulfill its obligations under the GNC distribution deal and to close a private placement tranche as anticipated, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this news release. Such factors include, without limitation: issues relating to the production, distribution and sales of CELLF or the inability of Mikra to meet its obligations under the GNC distribution agreement and the inability of the Company to meet the conditions set forth in the Investment Agreement to close any additional tranches thereunder. Additional risk factors can also be found in the Company’s current MD&A, which has been filed under the Company’s SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Source: Lifeist Wellness Inc.