Chemesis International Inc. Announces Closing of $925,000 Private Placement & Agreement to Settle Outstanding Promissory Notes
VANCOUVER, British Columbia, April 16, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the "Company" or "Chemesis"), is pleased to announce that it has completed a private placement ("Private Placement") of 500,000 common shares ("Common Shares") at a price of CDN $1.85 per Common Share under its previously-announced share subscription agreement (the "Agreement") with Global Emerging Markets ("GEM"). In addition, Chemesis has access to CDN $33,325,000 in draw down equity facilities between Alumina Partners Inc. & GEM.
The Company is also pleased to announce that it has agreed with the holders ("Holders") of the $5.5 million promissory notes ("Indebtedness") issued in connection with the Company's acquisition of La Finca Interacviva-Arachna Med SAS to settle the full aggregate amount of the Indebtedness in exchange for the issuance to the Holders, in aggregate, of 4,104,474 Common Shares. The shares being issued for the debt conversation are subject to a 24-month release/leak-out schedule.
As previously announced, La Finca is leveraging its Seed Producers License and registered cultivars to commence large scale commercialization. This will allow the Company to commence large scale expansion into its 1,060 acres of farmland. Furthermore, Chemesis will continue to leverage the Seed Producers License and its registered cultivars to export high concentrate CBD genetics and distillates.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The securities referred to herein will not be or 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 registration requirements.
On Behalf of The Board of Directors
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within California, Puerto Rico, and Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution and retail. Chemesis has facilities in both Puerto Rico and 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 emerging markets while consistently delivering quality product to its consumers from seed to sale.
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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 of 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 plans 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.
Source: Chemesis International Inc.