SpeakEasy Announces Closing of $4,302,500 Million Non-Brokered Private Placement



Ryan Allway

February 17th, 2021


ROCK CREEK, BC, Feb. 16, 2021 /CNW/ – SpeakEasy Cannabis Club Ltd. (CSE: EASY) (Frankfurt: 39H) (the “Company” or “SpeakEasy“) a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act is pleased to announce that it has closed its previously announced non-brokered private placement (the “Offering“).

The Company issued a total of 8,605,000 units (“Units“) at a price of $0.50 per Unit for aggregate gross proceeds of $4,302,500. Each Unit consists of one common share in the capital of the Company (a “Common Share“) and one Common Share purchase warrant (a “Warrant“). Each Warrant entitles the holder to acquire an additional Common Share at a price of $0.70 for a period of 36 months from the closing of the Offering.

In connection with the closing of the Offering, the Company paid aggregate finder’s fees of approximately $200,550 and issued an aggregate of 401,100 finder warrants (the “Finder Warrants“) to eligible finders. Each Finder Warrant entitles the holder to acquire one Common Share at a price of $0.70 for a period of 36 months from the closing of the Offering.

SpeakEasy intends to use the net proceeds from the Offering for working capital and general corporate purposes and the completion of our additional indoor grow facilities.

The securities issued by the Company under the Offering are subject to restrictions on resale in accordance with applicable securities laws. These restrictions will expire on June 17, 2021. The Offering is subject to final acceptance by the CSE.

Warrant Extensions

On March 8, 2019, the Company closed a private placement for aggregate gross proceeds of $8,250,000 (the “March 2019 Private Placement“). The March 2019 Private Placement consisted of the issuance of 16,500,000 units of the Company (the “March 2019 Units“) at a price of $0.50 per March 2019 Unit. Each March 2019 Unit consisted of one Common Share and one Common Share purchase warrant (a “ March 2019 Warrant“). Each March 2019 Warrant entitled the holder to acquire an additional Common Share at a price of $1.00 for a period of 24 months from closing. In accordance with the policies of CSE, the Company has extended the expiry date of the March 2019 Warrants for an additional 12 month period, such that the new expiry date of the March 2019 Warrants will be March 8, 2022.

On April 24, 2019 and April 25, 2019, the Company closed a private placement for aggregate gross proceeds of $7,490,501.20 (the “April 2019 Private Placement“). The April 2019 Private Placement consisted of the issuance of 11,523,848 units of the Company (the “April 2019 Units“) at a price of $0.65 per April 2019 Unit. Each April 2019 Unit consisted of one Common Share and one Common Share purchase warrant (a “ April 2019 Warrant“). Each April 2019 Warrant entitled the holder to acquire an additional Common Share at a price of $1.00 for a period of 24 months from closing. In accordance with the policies of CSE, the Company has extended the expiry date of the April 2019 Warrants for an additional 12 month period, such that the new expiry date of the April 2019 Warrants will be April 25, 2022.

About SpeakEasy Cannabis Club Ltd.:

SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and amended sales licence issued by Health Canada under the Cannabis Act. SpeakEasy owns 290 acres of land in Rock Creek, British Columbia, and leverages five generations of farming experience in B.C. as well as its favourable location to grow and process high-quality cannabis products at low cost. SpeakEasy cultivates small batch, high quality craft cannabis at scale in its 63,200 square foot indoor cannabis complex and has successfully completed its first harvest of its 60-acre outdoor field.

On Behalf of the Board of Directors
Malcolm Davidson, CEO

Statement Regarding Forward-Looking Information

This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause SpeakEasy’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.

Forward-looking statements in this document include statements concerning SpeakEasy’s intended use of proceeds from the Offering, its intent to produce and sell high quality craft cannabis and all other statements that are not statements of historical fact.

Although SpeakEasy believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our 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. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.

Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; COVID-19, adverse industry events; future legislative and regulatory developments involving cannabis; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the cannabis industry in Canada and generally; the ability of SpeakEasy to implement its business strategies; competition; the ability of SpeakEasy to obtain all applicable licenses, including those from Health Canada, and other assumptions, risks and uncertainties.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.

SOURCE Speakeasy Cannabis Club Ltd.

For further information: Malcolm Davidson, CEO, malcol[email protected], 1-604-218-9797

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Latest posts