Modern Meat (CSE:MEAT) raises $1M in first tranche of private placement

• Plant-based meat manufacturer, Modern Meat (MEAT) has closed the first tranche of its private placement, raising C$1 million in gross proceeds
• The company sold 222,223 of its units, each containing one common share and one half of a share purchase warrant 
• Modern Meat expects the private placement will be over-subscribed, due to high demand
• The company will use placement proceeds for product brand awareness, investor relations, product development, inventory purchases, and general working purposes
• Modern Meat (MEAT) is down 2.70 per cent and is currently trading at C$3.60 per share

Plant-based meat manufacturer, Modern Meat (MEAT) has closed the first tranche of its private placement, raising C$1 million in gross proceeds.

During the non-brokered placement’s first tranche, the company sold 222,223 of its units at $4.50 per unit. Each unit contained one common share in the company, and one half of a common share purchase warrant.

One whole warrant entitles the holder to buy one more common share in the company at a price of $5.50 each. The warrants can be exercised within a period of two years, although they are subject to accelerated expiry provisions. 

Such a provision would be if Modern Meat’s common shares trade on the Canadian Securities Exchange at or above a volume-weighted average price of $6.00 a share for ten consecutive trading days.

If this occurs, the company may give notice to warrant holders, informing them that the warrants will expire 30 days after notice is provided. 

All securities which are issued through the private placement will be subject to a statutory hold period of four months.

Due to the high demand for its private placement, the company expects that it will over-subscribe the placement. Modern Meat will provide further details about this in a future announcement.

The company will use proceeds from the private placement for general working purposes, as well as other activities. These include creating product brand awareness, investor relations, product development, and inventory purchases.

Modern Meat (MEAT) is down 2.70 per cent and is trading at $3.60 per share at 2:36pm EDT.