SpeakEasy Closes $1.1 Million Private Placement

Published: April 29, 2019

SpeakEasy Cannabis Club Ltd. has closed the second and final tranche of its previously announced non-brokered private placement for aggregate gross proceeds of $1,134,500.25. The second tranche of the Private Placement consisted of the issuance of 1,745,385 units of the Company at a price of $0.65 per Unit. Including the first tranche of the Private Placement, the Company issued a total of 11,523,848 Units for deemed aggregate gross proceeds of $7,490,501.20.

Each Unit consists of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $1.00 for a period of 24 months from closing. In connection with the completion of the second tranche of the Private Placement, the Company paid cash finders fees of $56,225 and issued 86,500 non-transferable broker warrants (the “Broker Warrants”). Each Broker Warrant entitles the holder to acquire one Common Share at an exercise price of $0.65 per share for a period of 24 months following closing.

The securities issued by the Company under the second tranche of the Private Placement are subject to restrictions on resale in accordance with applicable securities laws. These restrictions will expire on August 26, 2019. The Private Placement is subject to final acceptance by the Canadian Securities Exchange (the “CSE”).