TORONTO, ON – September 3, 2020 – CB2 Insights (CSE:CBII; OTCQB: CBIIF) (“CB2” or the “Company”), one of the largest integrative healthcare systems in the United States, is pleased to announce that it intends to complete a non-brokered private placement of up to 20,000,000 units (“Unit“) of the Company at a price of $0.15 per Unit for aggregate gross proceeds of up to CAD $3,000,000 (the “Offering”). Each Unit will consist of one common share (“Common Share“) in the capital of the Company and one half of one Common Share purchase warrant (each whole warrant a “Warrant“). Each Warrant is exercisable to acquire one additional Common Share at an exercise price of $0.20 for a period of twenty-four (24) months following the closing date of the Offering.
The Company is also pleased to announce that it has received a definitive lead order in the amount of CAD $2,000,000 from Merida Capital Partners and Affiliates(“Merida”). Merida is a cornerstone investor in the Company and continues to demonstrate strong support of the Company.
The Offering is expected to close on or about September 23, 2020 or such other date as may be determined by the Company.
The net proceeds of the Offering will be used by the Company for general corporate purposes and in accordance with its three-pronged growth plan which include growth through current services, new services and potential acquisitions.
The Company may pay certain eligible (a “Finder”) parties a cash commission (“Finder’s Fee”) equal to 8% of the gross proceeds of the Offering and finders warrants equal to 8% of the number of units issued pursuant to the Offering in respect of the Units sold to purchasers introduced to the Company by such Finder. There will be no Finder’s Fee payable on the Merida Investment.
All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws. The Offering is subject to receipt of all necessary corporate and regulatory approvals, including the approval of the Canadian Securities Exchange.