Canadian cannabis edibles company City View Green Holdings Inc. (CSE:CVGR) (OTCPK:CVGRF) announced Thursday it plans to raise gross proceeds of up to CA$1 million($730,000) through a non-brokered private placement of up to 100 million units at a price of CA$0.01 per unit.
Under the placement, each unit will include one company share and half a warrant. Two halves make a full warrant, allowing the holder to buy one company share at CA$0.05 per share for up to three years after the issue date. If the average closing price of the company's shares on the CSE equals or exceeds CA$0.055 for 10 consecutive trading days, starting one year after the closing, the company may shorten the warrant's expiry date to 30 days after notifying holders.
City View Green plans to use the net proceeds from the placement for general working capital purposes.
The non-brokered private placement is subject to regulatory approvals. The company will pay finders' fees to eligible finders in connection with the private placement, in compliance with applicable securities laws and CSE policies. The securities issued in the private placement will be subject to a four-month and one-day hold period, in accordance with Canadian securities laws.
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Additionally, City View Green entered into a marketing and consulting agreement with the arm's-length marketing firm Outside The Box Capital Inc. of Oakville, Ontario, to provide marketing and investor relations services, including social media and online media distribution. In connection with this engagement, starting on Oct. 15, 2024 and ending on Feb. 15, 2025, the company will pay OTBC a cash fee of $25,000 per month to a maximum of $75,000 over the term plus applicable taxes.
In April, City View Green announced it has exited the retail cannabis space through ts ownership in Budd Hutt, which relinquished its last two licenses and no longer operates in the Province of Alberta.
In November 2023, the company revealed it plans to review its strategy following June's working capital deficiency of almost CA$3.9 million and accumulated deficit of CA$44 million, writes Green Market's Adam Jackson. City View Green is yet to generate any revenue from its edibles operations.
Price Action
City View Green shares closed Friday's market session flat at $0.0051 per share.
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