VANCOUVER, BC – February 13, 2019 – Sunniva Inc. (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, is pleased to announce the completion of the previously announced non-brokered offering (the “Financing”) of convertible debentures (“Convertible Debentures”). The originally announced $10 million Financing was over-subscribed with gross proceeds received of CAD $15,042,055. This Financing provides additional working capital to enable Sunniva to meet the higher than anticipated near term sales demand for Sunniva branded cannabis products in California and for general corporate purposes. The Financing included two insiders of the Company subscribing, directly or indirectly, for a total of CAD $2.3 million which demonstrates management and insiders’ commitment to the Company.
The Convertible Debentures under the Financing were issued under the following terms:
• Term: 24 months; maturity date of February 15, 2021
• Interest Rate: 10% (paid annually)
• Conversion Rights: Convertible into common shares of Sunniva at any time within the Term
at the Conversion Price at the sole discretion of the holder
• Conversion Price: CAD $5.27 per common share
Beacon Securities Limited provided advisory services in conjunction with the Financing. In addition, a finder’s fee of 5% was paid to certain investment advisors for introducing certain purchasers of Convertible Debentures to the Company.
The Company anticipates holding a secondary closing of the Financing whereby employees of the Company and its affiliates may participate.
The Convertible Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Convertible Debentures in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.