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Lotus Ventures (CSE:J) Announced a Non-Brokered Private Placement

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The company plans to raise up to $2 million through an offering of up to approximately 6.7 million units at a price of $0.30 per unit.

Additional Information:

Company: Lotus Ventures
Website: http://www.lotusventures.com
Stock Symbol: CSE: J
Date Published: Jul 21, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Lotus Ventures (CSE:J) announced a non-brokered private placement.

The company plans to raise up to $2 million through an offering of up to approximately 6.7 million units at a price of $0.30 per unit.

Each unit consists of 1 share and one-half a warrant with each full warrant exercisable at $0.35 for 36 months.

The proceeds will be used for working capital and to fund construction of the company’s first cannabis production facility.

Lotus Ventures is a late stage applicant for a license under Canada’s Access to Cannabis for Medical Purposes Regulations.

To meet the anticipated demand for cannabis products when the adult recreational market begins on or before July 1, 2018, Canada recently announced changes in order to fast-track licensed producer applications.

The company plans to begin construction on its facility, which is located near Armstrong, British Columbia, before the end of July.

The facility will utilize a computer system to control both air flow and relative humidity in order to provide a pharmaceutical grade environment to avoid contamination.

The company believes this will result in a quality product with a low production cost per gram.

Lotus has a binding interim agreement with Cannabis Wheaton Income Corp, whereby Cannabis Wheaton will invest $5 million at a price per share equal to 3 times the closing price of Lotus at the date immediately prior to the initial subscription.

This agreement is subject to the usual terms such as due diligence, design and budget approvals, and receipt of Health Canada licensing approval.

Cannabis Wheaton will receive 50% of the proceeds of cannabis sales for a period of 10 years, along with the right of first refusal to finance any proposed expansion.

Chuck Rifici, Cannabis Wheaton CEO, stated: "We are delighted to be partnering with Lotus and its first-class management team in the buildout of its facility. Lotus is an important strategic partner for Cannabis Wheaton and enhances the overall strength of our platform."

Dale McClanaghan, Lotus CEO, stated: "We are pleased to move forward with this strategic relationship with Cannabis Wheaton for the buildout of our first facility and subsequent expansion. We look forward to this mutually beneficial relationship as we advance both of our respective companies."

The shares are trading at $0.37 and with 35.7 million shares outstanding, the company is capitalized at $13.2 million.

For more information, please contact Dale McClanaghan, President & CEO at 604-644-9844 or email dalemcclanaghan@gmail.com.
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I’m Samantha Deutscher for Investmentpitch Media