A local hemp and CBD extraction firm has tapped institutional investors for US$3 million to cover costs related to a recent merger.
LiveWell Canada announced last December that it is acquiring Canada’s Vitality CBD Natural Health Products and its U.S. subsidiary. The reverse-takeover deal would see Vitality assume a majority stake in LiveWell, though the resultant company would remain headquartered in Ottawa with operations in Gatineau, Alberta and the U.S. Financial terms of this deal, which remains subject to regulatory approval, were not disclosed.
LiveWell says it is using this fresh injection of capital to cover the final costs on Vitality’s purchase of a CBD extraction facility in New Mexico.
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The local company said in a release that it will issue the unnamed institutional investors a series of convertible notes, which will bear a monthly payable interest rate of 10 per cent. The secured notes can then be converted into common shares of the firm at a rate of 74 cents per share.
Investors also recent warrants entitling them to purchase three million common shares of Vitality at a cost of US$1 each.
LiveWell, a portfolio member of Canopy Growth’s investment arm, announced last fall it was also acquiring a Windsor-based company in a cash-and-stock deal valued at $20 million.
