TORONTO, Feb. 10, 2020 (GLOBE NEWSWIRE) -- Pure Global Cannabis Inc. (TSX.V:PURE; OTC: PRCNF) (the “Company” or “Pure Global” or “Pure”), an integrated growth-oriented cannabis bulk extracts and consumer products manufacturing company, operating through its wholly-owned subsidiary PureSinse Inc., a Health Canada Licensed Producer under the Cannabis Act, is very pleased to announce that it has secured a $7,000,000 First Mortgage financing from a prominent non-bank direct private Canadian lender (the “Lender”). Pure is also pleased to announce it has secure a second non-bank private lender mortgage in the amount of $250,000. In addition, the company is announcing a non-brokered private placement for proceeds of up to $2,100,000. These funds will be used to refinance current debt and provide Pure with new working capital.
The mortgages will be secured by Pure’s two industrial warehouses located in Brampton, Ontario, one of which is fully licensed and operational for indoor cultivation, extraction, and processing. The $7,250,000 in mortgages will be apportioned as follow:
- $5,000,000 to refinance current debt;
- $932,500 to provide Pure with working capital;
- $682,500 to be used to create a 12-month interest payment reserve;
- $250,000 as a holdback for potential building remedial costs;
- balance to cover fees, transactional and legal costs.
The private placement offering will consist of up to 37,500,000 units of the Company to be priced at $0.056 per unit. Each unit will consist of one Common Share and one-half Common Share purchase warrant. Each warrant will entitle the holder to purchase one Common Share at $0.1225. The warrants may be exercised beginning four months and a day after issuance then anytime for a period of 30 months following the Closing Date. The offering is expected to close on or about February 14, 2020, or such other date as may be determined by the Company at its sole discretion.
Pure Global CEO & President, Malay Panchal said, “These financings provides us with key capital to strengthen our balance sheet and execute on our strategic plan towards cash flow positivity. Having recently received an amendment to our existing manufacturing license from Health Canada we are now positioned to begin production in our state-of-the art facility in Brampton. We can immediately commence cultivation, extraction, and begin bulk distillate sales, while offering contract manufacturing services through our B2B brand, PureCanna Solutions.”
About Pure Global Cannabis
Pure Global is an EU-GMP grade cannabis manufacturer focused on producing high-quality high margin branded and white label cannabis and CBD consumer products, premium quality bulk dried flower, full spectrum concentrates, and pre-formulated active ingredients for CPG manufacturers globally. The Company is led by a professional team of experienced pharma, biotechnology, horticultural, extraction, manufacturing and consumer packaged goods experts, and operates through its wholly owned subsidiary, PureSinse Inc., which is a licensed producer under the Cannabis Act. Pure operates a B2B brand under PureCanna Solutions which is focused on high-margin bulk cannabis extracts, bulk CBD sales, as well as white label, and co-manufacturing services. The Company’s 18,000 square foot Brampton manufacturing campus houses facilities for vertically farmed hydroponic indoor cultivation, R&D, extraction, processing, and packaging. To compete in international markets, Pure Global is the process of deploying a joint operation in Yunnan, China for large scale hemp derived organic bulk CBD manufacturing and processing for international bulk and finished product sale under Special Economic Zone tax-free export provisions. Pure has also launched, or is in the process of launching, several premium branded products in targeted consumer categories into the Canadian legal adult market including PureSinse® Wellness, Paper&Weed Pre-Rolls, Galaxy Cannabis, Kumo Edibles, and PureSinse® Medical, which operates with Pure’s wholly own subsidiary Spark Cannabis Clinic, offering free telemedicine consultation for medical cannabis patients across Canada. Through its recently acquired division, The Great Canadian Health Company®, which won Hemp Product Company of the year at the recent 2019 GrowUp Awards, Pure is launching a line of organic hemp oil and CBD topical products, into several markets in Europe and Asia in early 2020.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements, including, but not limited to, statements about Pure Global’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could", “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, Pure Global cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and Pure Global assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Pure Global Cannabis Inc.