FinCanna Increases Private Placement to $2.5 Million
Vancouver, British Columbia, April 25, 2022 - FinCanna Capital Corp. (“FinCanna”) (“the Company”)(CSE: CALI) (OTCQB: FNNZF) an investment company focused on the U.S. licensed cannabis industry, reports that following higher than anticipated demand the Company has increased the size of its previously announced non-brokered private placement financing from $2.0 million to $2.5 million.
FinCanna intends to issue up to 25,000,000 Units at a price of C$0.10 for total gross proceeds of up to $2,500,000 by way of a non-brokered private placement. Each unit will consist of one common share of FinCanna and one common share purchase warrant (a “Unit”). Each warrant will be exercisable to acquire one common share of FinCanna at an exercise price of $0.20 for a period of 24 months from the date of the closing of the private placement. The warrants will be subject to acceleration at FinCanna’s discretion on the 30th day after FinCanna gives notice in the event that FinCanna’s common shares trade on the CSE on a volume weighted average price (“VWAP”) basis of C$0.30 or more for a period of 10 trading days. If at any time during the term of the warrants the closing price (or closing bid price on days when there are no trades) of FinCanna’s common shares quoted on the Canadian Securities Exchange is equal to or greater than $0.30 per common share for 10 consecutive trading days, then FinCanna shall have the right to accelerate the Warrant expiry date to the 30th day after the date on which FinCanna gives notice to the subscriber in accordance with the certificates representing the warrants.
To review FinCanna Capital’s recent investor presentation click here.
FinCanna has agreed to pay a finder’s fee by way of cash and/or warrants equal to 7% of the aggregate Units subscribed for pursuant to the subscriptions arranged by such finders. Each warrant shall be exercisable for one common share at a price of C$0.20 for a period of 24 months following the closing date of the Private Placement.
The closing of the private placement is expected to occur on or about April 28, 2022 and is subject to be the receipt of all necessary regulatory approvals. All securities issued pursuant to the Private Placement will be subject to a four month hold in accordance with applicable Canadian securities laws. There is no material factor material change regarding FinCanna that has not been generally disclosed. FinCanna intends to use the net proceeds from the Private Placement to fund the launch of the new “manufacturer to retail” revenue strategy as well as ongoing working capital and general corporate purposes.
About FinCanna Capital Corp.
FinCanna is an investment company that provides growth capital to rapidly emerging private companies operating in the licensed U.S cannabis industry. FinCanna is focused on delivering high impact returns to its shareholders by way of a strategically diversified investment portfolio.
For additional information visit www.sedar.com
FinCanna Capital Corp.
Andriyko Herchak, CEO & Director
Information set forth in this news release contains forward-looking statements or forward-looking information (collectively, “forward-looking statements”) under applicable securities laws. Forward-looking statements herein include, without limitation, statements about the up to $2.5 million in private placement financing; the Company’s new “manufacture to retail” revenue strategy; and future plans and strategies of the Company. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks that the Company may not be able to raise $2.5 million in private placement financing, or any funds at all; the Company may not receive approval for the $2.5 million financing; the new “manufacturer to retail” model and strategy may not result in the anticipated benefits to the Company, or at all; and the risks identified in the CSE listing statement available at www.SEDAR.com and other reports and filings with the applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made, and the respective companies undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.