Sunniva Closes CAD Offering of $5.7 Million

VANCOUVER, British Columbia, Aug. 1, 2019 /CNW/ — Sunniva Inc. ("Sunniva", the "Company", "we", "our" or "us") (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, announces the closing of its previously announced non-brokered private placement (the "Offering") of CAD $5,772,879 for a total of 5,772,879 units of the Company ("Units"). Proceeds of the Offering will be used to provide short term working capital for operations in California, capital costs at the Sunniva California Campus and general corporate purposes. Each Unit consists of a principal amount of unsecured promissory notes of the Company ("Promissory Notes") and common share purchase warrants of the Company ("Warrants"). Certain members of Sunniva's senior management team including the CEO, President and CFO participated in the Offering subscribing, directly or indirectly, for CAD $1,619,955 for a total of 1,619,955 Units which demonstrates management and insiders' commitment to the Company. The Company anticipates holding a secondary closing of the Offering within the next 10 days.

The Units issued under the Offering have the following terms:

Promissory Notes

·  Maturity:

6 months from the closing date. 

·  Interest Rate:

10% (annual rate).

Warrants

·  Number of Warrants:

0.40 Warrants per Unit (each Warrant entitles the holder to acquire one

common share of the Company at the Warrant Exercise Price).

·  Warrant Exercise Price:

CAD $2.50 per Warrant.

·  Warrant Term:

24 months from closing.

 

A finder's fee of 5% payable in cash will be paid to certain investment advisors for introducing certain purchasers of Units to the Company.

The Promissory Notes and Warrants have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Promissory Notes or Warrants in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer: Past performance is not an indicator of future performance.

About Sunniva, Inc.

Sunniva, through its subsidiaries, is building a vertically integrated cannabis company operating in two of the world's largest legal cannabis markets – California and Canada.  In Canada, Sunniva's wholly owned subsidiary Natural Health Services Ltd. operates medical cannabis clinics that provide educational and clinical services to patients. In California, Sunniva is focused on creating sustainable premium cannabis brands supported by our large-scale, purpose-built cGMP designed greenhouse in Cathedral City, CA (the "Sunniva California Campus"), extraction facility and our in-house marketing and distribution businesses. We offer a steadfast commitment to safety and quality assurance providing cannabis products free from pesticides, which positions Sunniva in California as a leading provider of safe, high quality, reproducible products at scale.

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Louis O'Neill
Louis O'Neill

Louis is a writer based in Sydney with a focus on social and political issues. Having interviewed local politicians and entrepreneurs, Louis now focuses on cannabis culture, legislation & reform.

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