VANCOUVER, British Columbia, Nov. 30, 2018 (GLOBE NEWSWIRE) — Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA) (the “Company” or “Chemesis”), is pleased to announce that it will be completing a private placement financing of convertible debentures (“Convertible Debentures”) for gross aggregate proceeds of CDN$2,000,000 (the “Private Placement”). Each Convertible Debenture will bear interest at a rate of 8.0% per annum and have a two-year maturity date (“Maturity Date”). In addition, each Convertible Debenture will be unsecured and will be convertible, at the option of the holder, into common shares of the Company (“Common Shares”) at a price of $1.25 per Common Share.
The Company will have the right to repay and cancel the Convertible Debentures at any time prior to the Maturity Date at a price equal to 105% of the principal amount of the Convertible Debentures then outstanding plus accrued and unpaid interest thereon. In addition, the Company will have the right to compel the conversion of the Convertible Debentures in the event that the daily volume weighted average trading price of the Common Shares exceeds $2.50 per Common Share for 10 consecutive trading days.
Each placee will also be granted one Common Share purchase warrant (“Warrants”) for each Common Share underlying the Convertible Debentures. Each Warrant will be exercisable into one Common Share at an exercise price of $1.50 for a period of 24 months.
The Company notes that all of the placees are insiders of the Company.
The Company anticipates that the Private Placement will complete on or before December 4th, 2018.
[heading h=”6″]About Chemesis International Inc.[/heading]
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within California.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution, and retail. Chemesis has a facility in California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods, to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in other emerging markets while consistently delivering quality product to its consumers from seed to sale.
[heading h=”6″]On behalf of the board of directors[/heading]
CEO and Director
[heading h=”6″]Investor relations:[/heading]
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws relating to statements regarding the Company’s business, products and future the Company’s business, its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company’s products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend, to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release