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Cannabis Beverage Maker BevCanna To Raise $5M Via Private Offering

November 13, 2020 9:03 am
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BevCanna Enterprises Inc. (CSE:BEV) (OTCQB:BVNNF) said Friday it plans to run a non-brokered private offering of up to 10 million units at a price of 50 cents per unit, in order to collect gross proceeds of up to $5 million.

The producer of cannabis-infused beverages detailed how each unit will stand for one share of the company and one purchase warrant. Each warrant will be exercisable to obtain one extra share at a price of $0.75 per share within two years from the date of concluding the offering.

The British Columbia, Canada-based company added it has not set a minimum amount of proceeds needed for the offering to be finalized.

Proceeds will be utilized to back further development of its Canadian cannabis activities as it expects to obtain the receipt of its Health Canada issued Standard Processing License.

BevCanna also plans to use the money to support the growth of its U.S. nutraceutical and hemp-CBD e-commerce platform – Pure Therapy, improvement of its retail commercialization strategy, and the assessment of potential merger and acquisition opportunities.

“We’re very pleased with the show of confidence we’re seeing from prospective investors,” BevCanna CFO John Campbell said in a statement. “As we approach commercialization of our products in the Canadian market and are seeing significant progress in our U.S. cannabidiol and natural products strategy, we will use the funds to accelerate our cannabis and traditional CPG strategies in both markets. This will further solidify our leadership position within the North American beverage and natural products landscape.”

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