VANCOUVER, British Columbia, Aug. 07, 2018 (GLOBE NEWSWIRE) — Chemesis International Inc. (CSE: CSI) (the “Company” or “Chemesis”), is pleased to announce the Company has closed a draw-down equity financing of up to $25,000,000 CDN, with Alumina Partners, LLC, a New York-based private equity firm that has made substantial investments in the cannabis space.
The purpose of the agreement is to allow Chemesis to continue its growth strategy with complete financial flexibility and freedom. The financing is at the sole discretion of Chemesis, allowing for the ability to access funds when necessary. This strategy allows Chemesis to protect shareholder value while growing to meet demands in California and around the globe.
“We are very enthusiastic to be entering into such a major agreement, allowing us to be an aggressive first mover in California. This agreement will allow Chemesis major financial flexibility in its operations,” said CEO, Edgar Montero. “Such major investments are rare in the early stages and we are excited to receive such a significant commitment from Alumina Partners, LLC. This serves as meaningful validation of our business plan and growth strategy.”
“As the regulated cannabis marketplace continues to expand and evolve globally, product differentiation has proven invaluable to the boldest ventures in the space,” added Adi Nahmani, Managing Member of Alumina Partners, LLC. “We are pleased to help support Chemesis as they reinvest to open a new chapter of growth in the largest market in North America.”
The agreement details the purchase of up to $25,000,000 of units of the Company (the “Units”), consisting of one common share (the “Share”) and one common share purchase warrant (the “Warrants”), at discounts ranging from 15% to 25% of the market price of the Shares, with each Private Placement Offering occurring exclusively at the option of the Company, throughout the 24 month term of the agreement. The exercise price of the Warrants will be at a 50% premium over the market price of the Shares. There are no upfront fees or interest associated with the use of this financing.
About Chemesis International Inc.
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.
On behalf of the board of directors
CEO and Director
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