One World Products Signs Stock Purchase Agreement For Up To $10M, Announces Management Changes

One World Products Signs Stock Purchase Agreement For Up To $10M, Announces Management Changes

One World Products, Inc. OWPC entered into a common stock purchase agreement and registration rights agreement with an institutional investor for up to $10 million worth of shares issuable over a 36-month period time, based upon the current market price of the stock at the time. Separately, upon entering into the agreements, the investor made an initial fixed price equity investment of $150,000, which is subject to Rule 144 and a 6-month holding period.

Isiah Thomas, OWP chairman and CEO, stated, "This investment into One World Products provides substantial upfront capital that will be used to continue to scale our operations in Columbia, enhance industrial sales of hemp products to customers and expand our carbon credits, and it is in common stock equity at a fixed price. Of note, the common stock equity agreement will provide us additional growth capital to increase our sales and is at our control and discretion in regard to the amounts and timing. We believe this financing is not dilutive to current shareholders and enhances our value by increasing our cash and shareholder equity positions over time. It better positions us toward our capital markets' goal for 2023 of an up list to a major U.S. national exchange. At this time, the company has yet to decide on any recapitalization structure or timing, as our board and management continue to believe out stock is undervalued."

Following the initial investment, and subject to the conditions of the agreements, including that a registration statement is filed and declared effective with the Securities and Exchange Commission the company has the right, in its sole discretion, to sell up to an additional $10 million worth of shares over a 36-month period. The company will control the timing and amount of any sales to the investor and the investor is obligated to make purchases in accordance with the agreements.

There are no upper limits to the price per share the investor may pay to purchase common stock and the purchase price of the shares will be discounted per the agreement based on market prices of the company's shares at the time of each sale. No warrants, derivatives, financial or business covenants are associated with the agreements.

Management Changes

On September 6, 2022, the board of directors of the company appointed Terry L. Buffalo to serve as an independent director of the company to fill the vacancy caused by Bruce Raben's resignation. Buffalo, previously served as the CEO, CFO and a director of American Cannabis Company AMMJ and is the founder and principal of Buffalo Cannabis Advisors.

Photo: Benzinga; Sources: courtesy of geralt, lindsayfox via Pixabay

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Posted In: Bruce RabenBuffalo CannabisIsiah ThomasTerry L. BuffaloCannabisNewsPenny StocksMarkets

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