Abattis Bioceuticals Corp has agreed to receive a draw-down equity facility of up to $5 million. The investor is Alumina Partners, a U.S. private equity firm. Abattis, which is based in Vancouver, aggregates, integrates and invests in agricultural technology and biotechnology services for the emerging cannabis industry in Canada. It said it will use the proceeds of the facility to focus on growth opportunities and potential acquisitions.
Abattis Announced Private Placement Agreement of Up To $5,000,000
VANCOUVER, BC / ACCESSWIRE / December 8, 2016 / Abattis Bioceuticals Corp. (OTCQB: ATTBF) (CSE: ATT) (the “Company” or “Abattis”), is pleased to announce that the Company entered into a non-binding agreement for a draw-down equity facility of up to $5,000,000 CAD. The agreement provides for equity private placement offerings (the “Offerings“), to be conducted between Abattis and Alumina Partners (Ontario) Ltd. (“Alumina Partners“), a subsidiary of Alumina Partners LLC, a New York based private equity firm, in draw down amounts at the sole discretion of the Company, of up to $200,000.
Pursuant to the terms of the Offerings, Alumina Partners will commit to purchasing up to $5,000,000 worth of units of the Company (the “Units“), consisting of one common share (the “Shares“) and one common share purchase warrant (the “Warrants“), at discounts of 23% of the market price of the Shares, with each Offering occurring at the option of the Company, throughout the 18-month term of the agreement. The exercise price of the Warrants will be at a 25% premium over the market price of the Shares.
The Company completed the first tranche of the Offering today by issuing 649,350 Units at an issuance price of $0.1155 per Unit as well as the issuance of 166,667 Common Shares representing a portion of the commitment fee in respect of the equity facility.
The purpose of the Offerings is to provide the Company with financial flexibility and unilateral control over the financing of its working capital requirements, and provide access to capital as deemed necessary by the Board of Directors of the Company.
“We are very pleased to be entering into this agreement with Alumina Partners. The purpose of the Offerings is to provide the Company with a strong funding partner and to allow Abattis to focus on growth and potential acquisitions”, commented Rene David, interim CEO and CFO.
In addition, Abattis is undertaking a private placement of up to $500,000 CAD by way of issuing 4,329,004 units (with each unit consisting of one common share and one common share purchase warrant) of which Alumina Partners may form part of in addition to other investors.
The Company also issued 300,000 common shares to a consultant of the Company for services rendered.
Lastly, the Company also issued shares for debt to EROP Capital, LLC (“EROP”), in order to settle some of the Company’s payables. The parties agreed that the Company shall issue to EROP shares of the Company’s common shares (“Common Shares”) until EROP’s total gross sales of such Common Stock equal $115,881.89, as well as 60,600 shares of Common Shares to cover certain fees and expenses incurred by EROP during the settlement process (collectively the “Settlement Shares”), that when issued hereto, the Settlement Shares shall be freely tradable without legend or restriction pursuant to Section 3(a)(10) of the Securities Act of 1933 and shall be validly issued, fully paid and non-assessable shares.
About Abattis Bioceuticals Corp.
Abattis is a specialty agricultural technology and biotechnology company which aggregates, integrates, and invests in agricultural technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. The Company also is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols, and adheres to the applicable laws of Canada and foreign jurisdictions. For more information, visit the Company’s website at: www.abattis.com.
About Northern Vine Canada Inc.
Northern Vine Labs™ is licensed by Health Canada for the possession of Cannabis and related active ingredients, as well as the production of extracts for the purposes of analysis. Northern Vine Labs™ product certification and quality assurances programs incorporate global best practices and procedures for application in the Canadian market.
About Vergence Visionary Bioceuticals Corp.
Vergence Visionary Bioceuticals, dba Vergence Sales and Marketing Group, is a wholly owned subsidiary of Abattis Bioceuticals Corp. based in Vancouver, B.C., Canada. The Vergence team are bioceutical marketing specialists focused on health products to penetrate the fast-growing market for natural, safe and effective natural products that meet unmet wellness needs.
About Green Nature Health Care Products
Green Nature Health Care Products Inc. (http://www.green-nature.ca/en/) was established in 2012 by Jasmine Guan.The main market is the local travelers and immigrants, wholesalers. Over 400 customers have been obtained in China since the end of 2012 on dried blueberry and cranberry dried products, including the Wal-Mart chain supermarket and more than 200 to import and export food-based industry chain supermarkets. Green Nature has customs clearance through six cities in China: Shanghai, Nantong, Qingdao, Tianjin, Guangzhou, Hong Kong.
ON BEHALF OF THE BOARD
Rene David, CFO, Acting CEO
For further information, contact the Company at (604) 336-0881 or at firstname.lastname@example.org.
Photo courtesy of Reuters/Anthony Bolante