Vancouver, British Columbia--(Newsfile Corp. - August 15, 2017) - THC BioMed (CSE: THC) (OTCQB: THCBF) (FSE: TFHD) has received a financing commitment of up to $12 million from Alumina Partners LLC. Alumina Partners LLC, a New York-based private equity firm, will be providing, through its Alumina Partners (Ontario) Ltd subsidiary, an equity facility of up to $12 million.
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The initial investment will consist of a series of private placements of units with each offering occurring at the option of THC BioMed. The first tranche of $150,000 will be from the placement of 483,870 units, priced at $0.31 per unit, with each unit consisting of 1 share and 1 full warrant, with the warrant exercisable at $0.3875 for 36 months.
THC BioMed is an authorized licensed producer of dried Marijuana, for Medical Purposes, with a production only license for fresh marijuana and cannabis oil.
John Miller, President & CEO, stated: "While growth is necessary in a fast-moving industry like we are witnessing, quick access to capital is essential. However, we continue to remain conscious of dilution and look towards revenue generation and profitability to finance our growth only using financing as a last resort. This is the second capital commitment we have entered into giving us access to $22 million dollars."
Adi Nahmani, Managing Member of Alumina Partners, stated: "We were impressed by THC BioMed's decisive execution on their corporate vision, quickly closing on their Clone Shipper acquisition while simultaneously laying the groundwork in preparation for becoming the wholesaler of choice of live clones to the expected home growers' market. If realizing the potential in this new market revolves around taking calculated risks, we're eager to see what the future holds for THC."
The company is using the newly designed Clone Shipper 3.0 containers to ship live cannabis plants across Canada and believes it is the one of the first companies in Canada to ship live cannabis plants. The patented design allows for a LED light to keep the clone in the growing vegetative stage for 12 to 24 hours during shipment.
The company currently ships the most live Cannabis plants in Canada, and has the widest selection of strains available. It has developed strains with a distinct herbal odor, resulting in a product which exhibits a less pungent marijuana smell when smoked. THC currently offers 29 different genetic strains for sale and has the largest variety of genetic strains available in Canada for home growers.
The shares are trading at $0.37 and with 103 million shares currently outstanding, the company is capitalized at $38.1 million.
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