BC Craft Supply Co. Ltd. has entered into an agreement to complete a strategic private placement with Mr. Daniel Petrov for aggregate proceeds of $500,000 (the “Private Placement”). The Company is also pleased to announce that it has entered into a letter of intent to acquire 100% of Somo Industries Inc. dba Feelwell (the “Acquisition”).
Strategic Private Placement
Mr. Petrov is an accomplished cannabis industry leader with a decade of experience working with a number of successful cannabis ventures and acting as a consultant to industry-related companies worldwide. He is the current Chief Executive Officer of Kiaro Holdings Corp. (TSXV:KO), co-founder and former Executive Vice President of Aurora Cannabis (NYSE:ACB). In addition to his role as CEO, Mr. Petrov has held board positions with various cannabis companies and is part of a working group of Canadian experts that advise international governments on developing cannabis regulations.
Pursuant to the Private Placement offering, the Company will sell an aggregate of 6,095,238 units in the capital of BC Craft (each a “Unit”), each Unit will be issued at a price of CAD $0.084 and comprised of one common share of the Company (each a “Common Share”) and one-half of one (1/2) common share purchase warrant (each whole warrant, a “Warrant”) of the Company. Each Warrant is exercisable to acquire one Common Share of the Company for a period of 24 months following the closing date at an exercise price of CAD $0.126 per Common Share. All securities issued or issuable pursuant to the Private Placement are subject to a hold period of four months and one day.
In connection with the Private Placement, Mr. Petrov has been appointed as a member of the Company’s advisory board. As compensation for Mr. Petrov’s services as an advisory board member, the Company will grant to Mr. Petrov stock options to purchase up to an aggregate of 100,000 Common Shares at an exercise price of $0.105 per Common Share for a period of up to 5 years. The stock options are subject to the Company’s stock option plan and vest over a period of approximately five (5) months.
Matthew Watters, CEO of BC Craft stated, “We are thrilled to welcome Daniel Petrov as a member of our advisory board. Daniel’s personal business and investment initiatives reflect his passion for driving innovative, high reward projects and we are delighted to be added to his ecosystem. Mr. Petrov’s addition comes at a critical time as we gain traction in market and we look forward to leveraging his experience and personal relationships in the to help shape BC Craft’s strategic direction.”
Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada’s craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most trusted cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.
BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.