California-based Plus Products Inc. has closed a private placement with Canaccord Genuity Corp., as lead agent, together with a syndicate of agents, for 25,000 units of the company, for gross proceeds of C$25m.
Gotham Green Partners and Stable Road Capital were two of the lead investors in the private placement.
Jason Adler, Managing Member of Gotham Green Partners noted: “We are thrilled to continue to have the opportunity to invest in PLUS. PLUS has built a tremendous brand and the management team is second to none. We look forward to working closely with the company to help them achieve their goals”.
“We are thankful for the support we have received from our past investors, and from new investors, as we continue to reach our goal of becoming the strongest cannabis brand in the world by delivering on our mission to make cannabis safe and approachable,” said Jake Heimark, CEO of Plus Products.
Each unit consists of one unsecured convertible note accruing interest at 8% per annum, payable semi-annually in arrears until maturity, and 77 subordinate voting share purchase warrants of the company.
The convertible notes have a maturity date of 24 months from the closing date, being February 28, 2019.
“We are thrilled to continue to have the opportunity to invest in PLUS. PLUS has built a tremendous brand and the management team is second to none. We look forward to working closely with the company to help them achieve their goals.”
Each convertible note shall be convertible into subordinate voting shares in the capital of Plus Products at a price of $6.50 per conversion share commencing on the date which is seven months after the closing date.
Each Warrant entitles the holder thereof to acquire one subordinate voting share in the capital of the company for an exercise price of $8.00 per Warrant Share for a period of five years following the closing date.
If exercised during the first 12 months after the closing date, the underlying shares shall be subject to a 365-day contractual hold from the closing date.
The Agents received a cash commission on the sale of the offering of C$1,268,350, plus C$98,750 as agents’ expenses, including legal fees.
The agents also received 100,823 compensation warrants, each carrying the right to purchase one subordinate voting share in the capital of the company at a price of $8.00 per compensation warrant share for a period of two years from the closing date.
The proceeds from the offering will be used by the company for working capital and other general corporate purposes.
Plus Products is a branded-products manufacturer based in California. Its products consist of cannabis-infused edibles, which it sells to both the regulated medicinal and adult-use recreational markets. PLUSTM is currently one of the fastest-growing edible brands in California.Cannabis Business Worldwide