- Hemp grower, Sweet Earth Holdings (SE) has closed its non-brokered private placement of units, after raising approximately C$2.7 million
- The company’s placement consisted of 13.4 million units, with each unit containing one common share and one share purchase warrant
- Sweet Earth sold 300,000 units to company directors, paid $4,200 cash in finder’s fees, and issued 21,000 broker warrants
- The placement proceeds will fund development of new product lines, product marketing costs, working capital, and general corporate purposes
- Sweet Earth (SE) is up 33.33 per cent and is currently trading at 18 cents per share
Hemp grower, Sweet Earth Holdings (SE) has closed its non-brokered private placement of units, after raising approximately C$2.7 million.
Under the private placement, the company sold 13.4 million units in Sweet Earth, at a purchase price of 20 cents per unit. Each unit contained one common share in the company, as well as one transferable common share purchase warrant.
Each warrant entitles the holder to buy one more common share in Sweet Earth, at an exercise price of 25 cents per share. This must be done within 12 months of the private placement’s closing date.
During the placement, three directors of Sweet Earth acquired an aggregate 300,000 units in the company. Their participation in this manner constituted a related party transaction.
Through the placement, Sweet Earth also issued paid $4,200 cash in finder’s fees, and issued a total of 21,000 broker warrants. The broker warrants have the same terms as the warrants issued through units in the placement, but are non-transferable.
All securities which the company issued through the private placement are subject to a statutory hold period of four months. As such, the hold period should expire on December 26, 2020.
The placement’s $2.68 million in total proceeds will be used to funds a variety of purposes, particularly the development of new Sweet Earth product lines.
Some money may also go towards covering product marketing costs, working capital, and the company’s general corporate purposes.
After first listing at the end of May, the company initially had a tumultuous market debut, but is now trading steady with its original IPO price.
Sweet Earth (SE) is up 33.33 per cent and is trading at 18 cents per share at 12:17pm EDT.