HempFusion closes US $ 2.94 million oversubscribed private placement
DENVER – (COMMERCIAL THREAD) – HempFusion Wellness Inc. (TSX: CBD.U) (OTCQX: CBDHF) (FWB: 8OO) (“HempFusion” or the “Company”), a leading health and wellness company providing premium quality probiotic supplements and products containing CBD, is pleased to announce the closing of its private placement previously announced. The Company issued 11,770,000 units (the âUnitsâ) at a price of US $ 0.25 per unit for gross proceeds of approximately US $ 2.94 million (the âPrivate Placementâ).
Each unit is made up of one common share of the Company and one common share purchase warrant (âwarrantâ), each warrant being exercisable to acquire one common share at a price of $ 0.50. US per common share for a period of four years from the date of issue.
The directors and officers subscribed 1,600,000 units at a purchase price of US $ 0.25 per unit, including Company CEO Jason Mitchell, ND, Jon Visser, COO and various members of the advice. The proceeds will be used for general working capital and marketing initiatives.
The Company paid finder’s fees totaling US $ 30,275 to certain finders. The Company also issued a total of 121,100 broker’s warrants in connection with the private placement, each broker’s warrant exercisable for one unit at the exercise price of US $ 0.25 per unit for four years. from the date of issue.
“Our recent acquisitions of Apothecanna and Sagely Naturals have helped complement our portfolio of CBD brands, providing HempFusion with increased access to female and baby boomer demographics, greater online presence, and leadership and additions. exceptional products, âsaid Jason Mitchell, ND, Co-Founder and CEO of HempFusion. âThe proceeds from this private placement further strengthen our balance sheet and allow us to further accelerate the development of our online and wholesale businesses. The involvement of the Company’s management in the financing is expected to strengthen investor confidence in our ability to meet our previously disclosed revenue guidance for 2021 and 2022. â
“With our nationwide retail presence in over 15,000 locations across the United States and growing, the continued development of our international business progressing as planned and our direct-to-consumer and private label businesses growing. Continuing, I believe the proceeds from this fundraising round can help expand our distribution reach even further, âsaid Jon Visser, COO of HempFusion. âOur continued growth does not depend on major changes in the regulatory environment, however, with Congress currently considering two hemp related bills, we are well positioned to see further growth if the situation changes. In the meantime, we continue to develop our product lines (including our new line of popular erasers) and increase the depth of our channels. ”
In addition, the Company announces that Nick Grafton has resigned as a director of the Company effective September 30, 2021. The Company’s Board of Directors expresses its gratitude to Mr. Grafton for his contribution to the Company.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described in this press release in the United States. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the âUS Securities Actâ), or any state securities law, and, by therefore, may not be offered or sold in the United States, or to or on behalf of or for the benefit of persons in the United States or “US Persons” as that term is defined in Regulation S promulgated under the US Securities Act, unless registered under the US Securities Act and applicable state securities laws. or under an exemption from these registration requirements.
One of the few CBD companies today that is fully prepared to meet or exceed expected FDA guidelines, HempFusion Wellness Inc. HempFusionâ¢, Sagely Naturalâ¢, Apothecannaâ¢, and Probulin Probioticsâ¢, one of the fastest growing probiotic companies in the United States according to data reported by SPIN.
Harnessing the power of the complete nutrition of hemp, the HempFusion family of brand product portfolio includes 112 references, including USDA certified organic tinctures, FDA proprietary over-the-counter (OTC) topical medications, probiotic supplements and skin care products, a Doctor / Practitioner Line, a White Label division and more. With a strong emphasis on research and development, HempFusion Wellness has 43 products under development.
Available at more than 15,000 outlets in the United States in all 50 states, HempFusion Wellness products are also available in China, Mexico, Ireland, United Kingdom, United Arab Emirates, South Korea and Canada and can be purchased online from each brand’s website, The Probuline store on Amazon.com, Alibaba’s Tmall.com, the world’s largest cross-border online marketplace, and a host of additional e-commerce sites.
This press release contains forward-looking statements and forward-looking information within the meaning of Canadian securities laws (collectively, âforward-looking statements“) that relate to HempFusion’s current expectations and views of future events. All statements that express or involve discussions regarding expectations, beliefs, plans, goals, assumptions or future events or performance (often , but not always, by the use of words or expressions such as “will probably result”, “are expected”, “expects”, “will continue”, “is expected”, “anticipates”, “believes” “,” Estimates “,” intends “,” plans “,” plans “,” projection “,” strategy “,” objective “and” outlook “) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. No assurance can be given that such expectations will prove to be correct and forward-looking statements included in this press release should not be improperly relied upon. These statements speak only as of the date of this press release. In particular, and without limitation, this press release contains forward-looking statements relating to the closing of the private placement, the use of the proceeds of the private placement and other plans, priorities and objectives of the Company.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the control of HempFusion, which could cause actual results and events to differ materially from those. which are disclosed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the impact and progression of the COVID-19 pandemic and other factors set out under “Caution Regarding Forward-Looking Statements” and “Risk factorsIn the Company’s Annual Information Form dated March 31, 2021 and available under the Company’s profile on SEDAR at www.sedar.com. HempFusion assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New factors appear from time to time, and it is not possible for HempFusion to predict all of them or assess the impact of each of these factors or the extent to which one factor, or a combination of factors, may cause results significantly different from those contained. in any forward-looking statement. All forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.