SpeakEasy Closes $8.25 Million Private Placement

Published: March 11, 2019

SpeakEasy Closes $8.25 Million Private Placement

SpeakEasy Cannabis Club Ltd. has closed its previously announced non-brokered private placement for deemed aggregate gross proceeds of $8,250,000. The Private Placement consisted of the issuance of 16,500,000 units of the Company at a price of $0.50 per Unit. Each Unit consists of one common share in the capital of the Company and one-half of one Common Share purchase 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 Private Placement, the Company paid a cash finders fee of $122,500 and issued 245,000 non-transferable broker warrants. Each Broker Warrant entitles the holder to acquire one Common Share at an exercise price of $0.50 per share for a period of 24 months following closing. 929,242 Units, representing $464,621 of the gross proceeds from the Private Placement, were issued to certain of the Company’s creditors in satisfaction of outstanding debt obligations. It is anticipated that the net proceeds of the Private Placement will be used for working capital and general corporate purposes.