Sunniva Offers Non-Brokered Private Placement of USD $7,500,000

VANCOUVER, BC – August 28, 2019 – Sunniva Inc. ("Sunniva", the "Company", "we", "our" or "us") (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, is announcing a non-brokered private placement (the "Offering") of USD $7,500,000 (approximately CAD$10,000,000) for a total of 7,500,000 units of the Company ("Units") and an initial first tranche closing of USD $1,500,000 (approximately CAD $2,000,000) for a total of 1,500,000 Units (the "First Tranche Closing"). Each Unit consists of a principal amount of promissory notes of the Company ("Promissory Notes") and common share purchase warrants of the Company ("Warrants").  A director of the Company participated in the First Tranche Closing subscribing directly for USD $500,000 (approximately CAD $666,500) for a total of 500,000 Units.

Sunniva has signed commitments from certain investors who participated in the First Tranche Closing for an additional investment of USD $6,000,000 for a total of 6,000,000 Units.  A secondary closing of the Offering is expected to close on or prior to September 30, 2019.  Proceeds of the Offering will be used to pay capital costs obligations at the Sunniva California Campus and for general corporate purposes.

The Units issued under the Offering have the following terms:

Promissory Notes

  • Maturity: 18 months from the closing date.
  • Interest Rate: 10% (annual rate).

Warrants

  • Number of Warrants: 1.11 Warrants per Unit (each Warrant entitles the holder to acquire one common share of the Company at the Warrant Exercise Price).
  • Warrant Exercise Price: USD $0.90 (CAD $1.20) per Warrant.
  • Warrant Term: 24 months from closing.

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, 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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