Hemptown Organics, a privately held British Columbia company, on Thursday announced its entry into a non-binding letter of intent (“LOI”) with Global Fund LLC. The LOI is regarding a potential US$8 million investment into Hemptown Organics by Global Fund via its newly established “Global Bio Solution Fund I” (the “financing”). According to the update, under the terms of the LOI, Global Fund has agreed, subject to due diligence and entry into definitive agreements, to subscribe for an aggregate of 5,714,285 units of Hemptown Organics, each at a price of US$1.40, for minimum gross proceeds of US$8 million (the “original investment”). Each unit consists of one common share in the capital of the company (each, a “share”) and one share purchase warrant (each, a “warrant”). Each warrant shall be exercisable into one additional share (each, a “warrant share”) at US$2.80 per warrant share for 24 months from date of issuance. In connection with the financing, Hemptown Organics has agreed to grant certain investor rights to Global Fund as addressed in the update.
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About Hemptown Organics Corp.
Hemptown is a diversified, industry leading cannabinoid company delivering a diverse product offering across the value chain, in multiple sales channels, to meet the growing global demand for cannabinoid-based products. State-of-the-art cultivation in Oregon’s Rogue Valley, FDA-licensed and cGMP-certified product manufacturing and a strong leadership team with Fortune 500 experience, including Kellogg’s, Nike and Intel, are the pillars for Hemptown’s growth model as the company pushes into the consumer-packaged goods sectors with top quality white label and branded product lines for the consumer market. For more information, visit www.HemptownUSA.com.
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