- Pure Extracts recently updated investors on successful completion of second tranche of its special warrants private placement
- In aggregate, Company will raise gross proceeds of $8.5 million through both tranches of private placement
- Pure Extracts will employ net proceeds from private placement towards capacity expansion for Company’s extraction business, and for general working capital purposes
- Company previously revealed that it was conducting study looking into formulation, manufacturing of psilocybin-based active treatments
Pure Extracts Technologies (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ), a plant-based extraction company focused on the cannabis, hemp, and functional mushroom sectors, has recently updated investors following the successful completion of the second tranche of their non-brokered private placement offering of special warrants (https://cnw.fm/Cfk2b). Following the close of the second tranche, which resulted in Pure Extracts issuing an aggregate 10,839,230 special warrants for gross proceeds of $5,473,811.14, the company will have raised a total of $8,534,632.81 from its private placement.
The special warrants each comprised of one common share and one-half of a purchase warrant (with each warrant entitling the holder to acquire one common share at an exercise price of $0.65 per share for a period of 24 months following the deemed exercise date). The transaction is set to be completed upon the earlier of either a release of the final prospectus for the private placement or four months and a day from the closing date of the private placement, which is set to fall on May 21, 2021. All securities issued through the private placement will be subject to a four-month lock-up, expiring on May 21, 2021.
Pure Extracts will also pay finder’s fees of $139,501.41 cash and 395,817 finder’s warrants (with each finder’s warrant entitling the holder to purchase one common share of the Company at an exercise price of $0.65 per share, until January 20, 2023) as part of the private placement.
Pure Extracts has revealed that it is set to use the net proceeds from the private placement primarily for expansion of capacity for the Company’s extraction business and for general working capital purposes. The Company previously announced that it had recently embarked on a study looking into the formulation and manufacturing of psilocybin-based active treatments, which is being carried out under the auspices of the Toronto Institute of Pharmaceutical Technology.
In conjunction with the study, Pure Extracts recently revealed that the Company had begun construction on a fourth unit within its 10,000 square foot purpose-built facility, to be designated for its research and development into psilocybin and functional mushrooms as a whole (https://cnw.fm/hsfnd).
The proceeds raised from the private placement will place Pure Extracts in a well-capitalized position to adequately finance the Company’s ongoing research into the functional and psychedelic mushrooms space while simultaneously building upon its ongoing extraction tolling business – a process through which the Company converts cannabis and hemp biomass into THC and CBD oil for both third parties and for its own-branded products.
For more information, visit the company’s website at www.PureExtractsCorp.com.
NOTE TO INVESTORS: The latest news and updates relating to PULL are available in the company’s newsroom at https://cnw.fm/PULL
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