Ikänik Farms announces completion of non-middleman private placement and concludes loan agreement
Posted: October 25, 2021 at 5:51 p.m. EDT|Update: 46 minutes ago
CORONA, california, 25 October 2021 / PRNewswire / – IkÃ¤nik Farms, Inc. (CSE: IKNK.U) (FSE: DFMA) (the “Society” Where “IkÃ¤nik Farms“) is pleased to announce that it has completed the previously announced non-brokered private placement of the Company consisting of a total of 4,779,970 units of the Company (the”Units“) at the price of $ 0.30 USD per unit (the “Issue price“) for the total gross proceeds of $ 1,433,991.53 USD. Each unit consists of one subordinate voting share (a “To share“) of the Company and a half share purchase warrant (each, a”To guarantee“). Each entire Warrant will allow its holder to acquire one additional Share (each, a”Warrant share“) at the price of $ 0.60 USD per warrant share for a period of two years. The Company has modified the price of the Offer in relation to its previously announced conditions (the initial issue price being $ 0.783 USD and the exercise price of the warrant being $ 1.566 USD) to better reflect current market conditions and the price of the Shares.
The Company also announces that its wholly owned subsidiary, Firehouse Holdings Inc. (“Fire station“) closed a US $ 750,000 debt financing (the “To lend“) with a current shareholder of the Company (the”Lender“) under a loan agreement entered into on 12 October 2021 between Firehouse and the lender. The term of the Loan is for a period of thirty (30) days with an optional extension of twenty-five (25) additional days and bears interest at the rate of 8% per year payable on the first day of each month hereafter, repayable. at any time before maturity without penalty. The loan is subject to additional fees and financial covenants and is secured by a promissory note from the Company as well as a guarantee agreement. Under the terms of the loan, the Company issued 2,000 Series A warrants (each, a âTo guarantee“), each warrant that may be exercised to acquire one (1) Series A Multiple Voting Share (“Series A share“) at an exercise price equal to $ 8.00 USD per share for a period of two years from the date hereof. Each Series A share is convertible into 100 subordinate voting shares of the Company.
The proceeds of the investment and the loan are used to repay existing debts and for general working capital purposes.
The securities issued within the framework of the Offer are subject to a legal holding period expiring February 23, 2022.
About IkÃ¤nik Farms
IkÃ¤nik Farms is a California-based multinational operator (MNO) building a dynamic portfolio of brands, inspired by its passion for health and wellness, action sports, and supported by its retail, distribution and its vertically integrated culture in California and its medical grade culture and laboratory in Colombia. The company’s leadership brings decades of expertise in R&D, culture, retail, branding and corporate finance. The IkÃ¤nik Farms operation in Colombia, through its pharmaceutical division Pideka, holds both GMP-PHARMA and (GACP) Good Agricultural and Collection Practices certifications for its Casa Flores operation site.
This press release includes âforward-looking informationâ and âforward-looking statementsâ within the meaning of Canadian securities laws and United States securities laws (together, âforward-looking information.â All information, other than statements historical facts, are included in this press release that deal with activities, events or developments that the Company expects or anticipates will occur or may occur in the future, is forward-looking information. ” , “estimate”, “expect”, “intend”, “may”, “potential”, “believe”, “should”, and similar expressions, are forward-looking information.
Although the Company has attempted to identify material factors which could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there may be other factors which may cause that the results, performance or achievements are not as expected, estimated or expected, including, but not limited to: changes in laws, change of management, Firehouse’s ability to repay the loan, Company assets used as collateral for the loan, inability to secure additional financing, increased competition, hampering market growth and state adoption due to inconsistent public opinion and perception the medical and adult marijuana industry and regulatory or policy changes.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates regarding future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in the forward-looking information may differ materially from the actual results or events.
Therefore, readers should not place undue reliance on forward-looking information. The forward-looking information contained in this press release is made as of the date of this press release. The Company disclaims any intention or obligation to update or revise this information, except as required by applicable law, and the Company assumes no responsibility for the disclosure relating to any other company mentioned herein.
On behalf of the board of directors of IkÃ¤nik Farms Inc.
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SOURCE Ikanik Farms Inc.
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