The BC Bud Co Closes Initial Financing Tranche

The BC Bud Corporation, a house of high-quality cannabis brands based out of British Columbia, Canada, announces it has closed an initial tranche of its previously announced (see news release dated July 28, 2023) of its previously announced non-brokered private placement (the “Placement”).

Gross proceeds of $52,500 were raised through the sale of 700,000 units at a price of $0.075 per unit (each a “Unit”). Each Unit comprised one common share and one share purchase warrant. Each whole warrant entitles the holder to purchase a further common share at a price of $0.15 per share until August 4, 2026.

No finder’s fees were paid in connection with the initial tranche of the Placement. All securities issued in the first tranche are subject to a hold period in Canada expiring on December 5, 2023. Proceeds of the Placement will be utilized for business development and general working capital purposes.

Additionally, the Company reports that its subsidiary, the BC Bud Holdings Corp. (“Holdings”) has entered into an amending agreement with Sutton Ventures Ltd. (“Sutton”), a private entity owned and controlled by CEO, Brayden Sutton, to increase the amount of the secured loan dated January 22, 2021 from $100,000 to $150,000 (the “Amendment”). All other terms of the loan remain the same.

Additionally, Holdings has also entered into a loan agreement dated August 4, 2023 with Cybin Therapeutics Inc. (“Cybin”) pursuant to which Cybin has advanced to Holdings the principal amount of $60,000 (the “Loan”). The Loan is due on July 30, 2024 and bears interest at a rate of 8% per annum, payable upon maturity. The Loan will be secured by a general security interest in the personal property of Holdings. Cybin is a private entity in which both Brayden Sutton, CEO and director and Josh Taylor, President and director, are controlling shareholders.

As both Sutton and Cybin are controlled by directors of the Company, the Amendment and the Loan constitute “related party transactions” as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the formal valuation and minority approval requirements under MI 61-101. The Company relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the Loan and the Amendment do not exceed 25% of the Company’s market capitalization.

About The BC Bud Co.
The B.C. Bud Co. is a house of brands created by industry professionals who are passionate about the user experience.