VANCOUVER, British Columbia, May 27, 2019 (GLOBE NEWSWIRE) -- Eden Empire Inc. ("Eden" or the "Company") is pleased to announce that it has raised $4.9 million as part of its larger $7 million convertible debenture private placement, and has entered into an agreement to acquire up to seven private non-medical cannabis retail stores in British Columbia to be licenced by the Liquor and Cannabis Regulation Branch of British Columbia ("LCRB").
Eden has successfully raised $4.9 million as part of its larger $7 million private placement (the "Offering") of non-transferable 10% secured debentures (the "Debentures") of the Company that are automatically convertible into common shares of Eden ("Common Shares") upon completion of a liquidity event, at a price of $0.30 per Common Share for a period of 18 months. It is expected that the Company will continue to raise funds under the Offering until it has raised approximately $7 million in total.
Eden has also entered into an agreement to acquire (the "Acquisition"), by way of a series of share purchase transactions, up to seven non-medicinal cannabis retail stores (the "Dispensaries") in the province of British Columbia upon, and subject to approval of the LCRB.
It is expected that the proceeds of the Offering will be used to fund retail store acquisitions in British Columbia pursuant to the Acquisition, store upgrades, for strategic acquisition opportunities as well as for general working capital purposes.
Eden is currently a private company formed and existing in the province of British Columbia. It is a covenant of the transaction documents in respect of the Acquisition that Eden will, by filing a long form prospectus, become a reporting issuer in the province of British Columbia and such other provinces of Canada as may be determined by the Company.
Retail cannabis operations are an emerging sector with significant cash flow potential. Public information shows that cannabis retail currently has one of the highest grossing sales per square foot of all retail segments in North America.
Eden has an award winning and established nationwide brand, including a substantial IP portfolio, and a dedicated management team with over 20 years of combined industry experienced.
The Offering and the Acquisition is expected to provide Eden with a greater presence in the retail cannabis space in British Columbia, and its expected reporting issuer status is expected to provide the Company with greater access to capital markets so as to be in a better position to obtain the financing required to undertake the Company's business objectives and improve liquidity for the security holders of Eden.
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including statements regarding the terms, timing and completion of the second tranche of the Offering and the Acquisition and the anticipated use of proceeds of the Acquisition. Forward-looking information is not a guarantee of future performance or results, since it involves risks and uncertainties. There is no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in forward-looking statements. Some of the factors on which the forward-looking statements are premised include (but are not limited to) the satisfaction or waiver of the conditions precedent to the completion of the second tranche of the Offering and of the Acquisition, the receipt of the approval of regulators (including the Liquor and Cannabis Regulation Branch of British Columbia) and the lack of material changes to general economic, market and business conditions. Forward-looking information is subject to the risk that those factors will not materialize, and to other risks. Except as required by law, Eden does not assume and expressly renounces any obligation to update any forward-looking information, which is only applicable on the date on which it is given.
The securities of Eden offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States.
For further information, please contact: Gerry Trapasso, CEO
Telephone: 1 (778) 898-5045