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Alternate Health Secures $5 Million Financing Facility from Alpha Blue Ocean

TORONTO , June 14, 2019 /CNW/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in hemp-derived CBD extraction, product development and distribution, announced today that it has entered into an agreement to obtain funds to finance Alternate Health's expansion of its CBD product line and hemp extraction facility.

Alternate Health Corp. (CNW Group/Alternate Health Corp.)

"The Company is pleased to announce our financing agreement with Alpha Blue Ocean ," says Howard Mann , CEO of Alternate Health. "This agreement gives us capital to support our expanding CBD operations including manufacturing, distribution and new product development".

Alternate Health has entered into a Subscription Agreement with European High Growth Opportunities Securitization Fund ("EHGO"), advised by Alpha Blue Ocean Inc. (" Alpha Blue "), for the sale of convertible notes with attached share purchase warrants. Alpha Blue is a money manager based in London, United Kingdom with a strong track record of partnering with public companies and delivering meaningful value to their shareholders.

"We are excited to partner with Alternate Health, an emerging leader in the CBD extraction and manufacturing," says Pierre Vannineuse, Founder & CEO of Alpha Blue Ocean . "This financing agreement will provide funds for the team to develop its hemp extraction infrastructure and expand CBD product development."

Terms of the Agreement

Alpha Blue's advisee, EHGO, has agreed to subscribe for up to $5,000,000 aggregate principal amount of senior unsecured convertible debentures (the "Notes") and accompanying warrants (the "Warrants"). The Notes shall be convertible into, and the Warrants shall be exercisable for, common shares ("Common Shares") in the capital of the Company, at prices to be determined at each closing under the Subscription Agreement. The Notes and accompanying Warrants shall be issuable in 24 separate tranches (each a "Tranche"). The Company shall issue the Notes in the principal amount of $700,000 for the first tranche (the "First Tranche") and shall issue Notes in the principal amount of $200,000 for each additional Tranche (each, a "Subsequent Tranche") or multiple tranches at a given time to a maximum of $500,000 based on a liquidity multiple and, in respect of each Tranche, accompanying Warrants, as described herein. The subscription price for each Note is 95% of its face value and the Notes shall bear no interest and the maturity date of the Notes shall be the date that is 12 months after their applicable issue date.

Subject to regulatory compliance, the Notes shall be automatically converted into such number of Common Shares as is equal to the aggregate principal amount of the Notes being converted, divided by the applicable conversion price immediately following the earlier of: (i) the delivery by the holder of a conversion notice, or (ii) the applicable maturity date of the Notes. In the event of a default under the Notes, there is an option to have the Notes redeemed in cash. At the closing of the First Tranche EHGO will be granted Warrants exercisable for three years with each Warrant having a right to acquire one Common Share of the Company. 

The First Tranche and each Subsequent Tranche will also include three-year Warrants (referred to as "Facility Warrants") to acquire Common Shares of the Company at prices to be determined at each closing under the Agreement.

The funds from this financing may be used for capital expenditures and general corporate purposes.

About Alternate Health

Alternate Health (CSE: AHG, OTCQB: AHGIF) is an international leader in the CBD industry, including extraction, product development and distribution. Alternate Health recently announced that it is acquiring Blaine Labs Inc., a Company that is a leader in cGMP medical product manufacturing and distribution, with over 50 product SKUs available from major retailers, including Walmart, Amazon, CVS and Walgreens. Alternate Health's industry-leading software systems provide the platform for the Company's diverse operations, including CBD product distribution, hemp-derived extract manufacturing, blockchain tax collection systems and electronic medical records (EMR) platforms.

Alternate Health's corporate office is located in Toronto, Canada , with additional offices in Venice, California , and San Antonio, Texas . The Company is well positioned to reinvest internal operating cash flow in its platform and product development over the long term, creating an attractive investment profile for its shareholders.

For more information about Alternate Health Corp., visit www.alternatehealth.com.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects", "plans", and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's intended use of the funds from the financing, and future operations, business prospects, anticipated growth and potential revenues are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. The Company has relied on a number of assumptions and estimates in making such forward-looking statements, including, without limitation, the likelihood of the Company completing its acquisition of Blaine Labs Inc., the prospects for development of the Company's products and the Company's ability to generate cash flows. Such assumptions and estimates are made in light of the trends and conditions that are considered to be relevant and reasonable based on information available and the circumstances existing at this time. A number of risk factors may cause actual results, level of activity, performance or outcomes of such acquisitions, product development, or cash flow generation to be materially different from those expressed or implied by such forward-looking information statements including, without limitation, whether such acquisition or product development will be completed and generate commercially viable cash flows, the need for additional funding to continue development efforts, and changes in general economic, market and business conditions.

SOURCE Alternate Health Corp.


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