Pure Global Cannabis Inc., an integrated growth-oriented cannabis bulk extracts and consumer products manufacturing company, operating through its wholly-owned subsidiary PureSinse Inc., a Health Canada Licensed Producer under the Cannabis Act, is very pleased to announce that it has secured a $7,000,000 First Mortgage financing from a prominent non-bank direct private Canadian lender (the “Lender”). Pure is also pleased to announce it has secure a second non-bank private lender mortgage in the amount of $250,000. In addition, the company is announcing a non-brokered private placement for proceeds of up to $2,100,000. These funds will be used to refinance current debt and provide Pure with new working capital.
The mortgages will be secured by Pure’s two industrial warehouses located in Brampton, Ontario, one of which is fully licensed and operational for indoor cultivation, extraction, and processing. The $7,250,000 in mortgages will be apportioned as follow:
- $5,000,000 to refinance current debt;
- $932,500 to provide Pure with working capital;
- $682,500 to be used to create a 12-month interest payment reserve;
- $250,000 as a holdback for potential building remedial costs;
- balance to cover fees, transactional and legal costs.
The private placement offering will consist of up to 37,500,000 units of the Company to be priced at $0.056 per unit. Each unit will consist of one Common Share and one-half Common Share purchase warrant. Each warrant will entitle the holder to purchase one Common Share at $0.1225. The warrants may be exercised beginning four months and a day after issuance then anytime for a period of 30 months following the Closing Date. The offering is expected to close on or about February 14, 2020, or such other date as may be determined by the Company at its sole discretion.
Pure Global CEO & President, Malay Panchal said, “These financings provides us with key capital to strengthen our balance sheet and execute on our strategic plan towards cash flow positivity. Having recently received an amendment to our existing manufacturing license from Health Canada we are now positioned to begin production in our state-of-the art facility in Brampton. We can immediately commence cultivation, extraction, and begin bulk distillate sales, while offering contract manufacturing services through our B2B brand, PureCanna Solutions.”