Radient Technologies (TSX.V: RTI) (OTCQX: RDDTF), a global commercial manufacturer of high-quality cannabinoid-based ingredients, formulations and products, on Monday announced a total financing package of up to C$15,400,000. The company has entered a non-binding letter of intent (“LOI”) with an institutional investor to subscribe for up to C$10,400,000 of convertible notes, which will have share purchase warrants attached to them. The notes and accompanying warrants shall be issuable in separate tranches. Pricing for the conversion of the notes and exercise of the warrants for common shares shall be determined at the closing of each tranche. Radient will issue the notes in the principal amount of $2,000,000 for the two initial tranches and will issue notes in the principal amount of $800,000 for each subsequent tranche. The subscription price for each note is 95% of its face value. The notes will bear no interest and will have a maturity date of one month. The conversion price of the notes will be based on the closing volume weighted average trading price at the time preceding signing. The tranches will also include warrants exercisable for a period of one year for the number of common shares equal to 30% of the total commitment. The exercise price of the warrants will be established at each closing and will be priced at a minimum 5% premium to the applicable conversion price for the tranche. There will be no maintenance fees paid and an 8% commitment fee will be paid in shares for the total commitment. The closing of this transaction is subject to due diligence, regulatory approvals including approval of the TSX Venture Exchange and execution of definitive documentation. Radient also announced a C$5 million non-brokered debenture financing. The unsecured debentures have an interest rate of 15% per annum and will mature 12 months from the closing date. The debenture holders will be issued common share purchase warrants equal to 50% of the principal value of the debentures. Each warrant is exercisable into one common share at an exercise price of C$0.70 per share and have a 24-month expiry from the closing date. The debenture financing is expected to close in tranches and is subject to TSXV approval. Radient plans to utilities the proceeds from the financings toward growth initiatives and for general working capital purposes.
The news release also included a corporate update highlighting Radient’s Cannabis 2.0 initiatives and its sale-leaseback transaction. The company plans to launch initial intermediate Cannabis 2.0 products in February 2020, followed by further oil and oil capsule products, THC concentrates, and topical products throughout the next two to three months. Due diligence for the sale-leaseback transaction is largely complete and the parties are advancing to finalizing definitive documentation. The agreement is anticipated to close during the second quarter of 2020. “We are pleased to have this financing along with the sale/leaseback in place as it will allow us to continue along our current growth trajectory, which includes the completion of the building construction of our 89,000 sq. ft Edmonton III facility. In addition, the access to working capital that this financing provides gives us a strong foundation as we continue to accelerate our ‘Cannabis 2.0’ initiatives,” Radient president and CEO Denis Taschuk stated in the news release.
To view the full press release, visit http://cnw.fm/PChL0
Radient Technologies is a commercial manufacturer of high-quality cannabinoid-based formulations, ingredients and products. Utilizing a proprietary extraction and downstream processing platform that recovers up to 99% of cannabinoids from the cannabis plant, Radient develops specialty products and ingredients that contain a broad range of cannabinoid and terpene profiles while meeting the highest standards of quality and safety. For more information, visit the company’s website at www.RadientInc.com.
CanadianCannabisWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CanadianCannabisWire.com
Do you have a questions or are you interested in working with CNW? Ask our Editor