- Mota Ventures (CSE:MOTA) has successfully raised C$1,720,000 in a private placement despite current market instability
- 6,142,859 units were issued at a price of $0.28 each
- The proceeds will go towards development of its First Class CBD products, as well as operational support for its newly acquired Sativida brand
- 178,215 shares were also issued to certain parties which assisted in facilitating the offering
- Mota Ventures (MOTA) is currently down 13.33 per cent to $0.32 per share
Mota Ventures (CSE:MOTA) has successfully raised C$1,720,000 in a private placement despite current market instability.
With operations around the world, the vertically integrated CBD brand is looking to establish sales channels and a distribution network through its portfolio of subsidiaries.
Pursuant to the non-brokered placement, 6,142,859 units will be issued at a price of $0.28 each. Every unit will include one common share in the company, as well as one purchase warrant for an additional share at a price of $0.38. The purchase warrants will be exercisable over a period of 24 months.
Mota Ventures expects to use the proceeds to further develop and market products under its First Class CBD brand. The company will also provide support for operations at its Sativida subsidiary, and will dedicate a portion of the funds to general working capital.
The all-stock acquisition of Sativida was announced last week with the intention of accelerating First Class CBD’s expansion into the European market.
Mota Ventures issued 5,496,221 common shares at a price of 56.89 cents to the vendor, Sativida OU, for the acquisition.
Ryan Hoggan, CEO of Mota Ventures, said that the ability to raise funds in the current economic environment is a significant achievement.
“This demonstrates the high level of confidence our investors have in the company.
“We expect additional funding of First Class CBD to directly affect revenue, and should put us in a position to exceed expectations this year,” he added.
In connection with the placement, Mota Ventures also issued 178,215 common shares to certain third parties who assisted in facilitating the offering.
According to current securities laws, all of the shares and units issued as part of the placement will be subject to a four-month-and-one-day statutory hold period.
Mota Ventures (MOTA) is currently down 13.33 per cent to $0.32 per share at 3:06pm EST.