Blueprint
CORDOVACANN ANNOUNCES CLOSING OF NON-BROKERED PRIVATE
PLACEMENT
TORONTO, ONTARIO, March 13, 2019 – CordovaCann Corp.
(CSE: CDVA) (OTCQB: LVRLF) (“Cordova” or the
“Company”), a cannabis-focused consumer products
company, announced today the closing of a non-brokered private
placement offering (the “Offering”) of unsecured
subordinated debenture units of the Company (the “Debenture
Units”) for gross proceeds of $600,000.
Each
Debenture Unit consists of $1,000 principal amount of unsecured
subordinated convertible debentures (the “Debentures”)
and 500 common share purchase warrants (the “Warrants”)
of the Company. The Debentures shall mature on March 12, 2021 (the
“Maturity Date”) and bear interest at a rate of 10% per
annum, accrued monthly and payable on the Maturity Date. The
outstanding principal amount of the Debentures and any accrued
interest is convertible into common shares of the Company at the
option of the holder at anytime prior to the Maturity Date at a
conversion price of $1.00 per share. Furthermore, the Company also
has the option to force conversion of the Debentures and any
accrued interest at the same conversion price if the
Company’s common shares trade above $2.50 per share for ten
consecutive trading days. Each full Warrant entitles the holder to
purchase one common share of the Company exercisable until March
12, 2021 at a price of $1.20 per share. In connection with the
Offering, the Company issued an aggregate of $600,000 in Debentures
and an aggregate of 300,000 Warrants. The proceeds of the Offering
will be used for capital expenditures and general working
capital.
The
Debentures and Warrants sold under the Offering, and any common
shares of the Company issuable upon conversion or exercise thereof
(collectively, the “Securities”), are subject to a
statutory four month and one day hold period expiring on July 14,
2019, and such further restrictions as may apply under foreign
securities laws.
The
Securities have not and will not be registered under the United
States Securities Act of 1933, as amended, and any other applicable
state securities laws and therefore may not be offered or sold in
the United States or to, or for the account or benefit of, United
States persons absent of registration or an applicable exemption
from registration requirements.
This
press release does not constitute a solicitation or offering to
purchase any securities of the Company. All references to dollar
amounts in this press release are in Canadian Dollars unless stated
otherwise.
About CordovaCann Corp.
CordovaCann
Corp. is a Canadian-domiciled company focused on building a
leading, diversified cannabis products business across multiple
jurisdictions including Canada and the United States. Cordova
primarily provides services and investment capital to the
processing and production vertical markets of the cannabis
industry.
Forward-looking Statements
This
press release contains “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on currently available
competitive, financial and economic data and management's views and
assumptions regarding future events. Such forward-looking
statements are inherently uncertain. The Company cannot provide
assurances that the matters described in this press release will be
successfully completed or occur. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to: global economic and
market conditions; the war on terrorism and the potential for war
or other hostilities in other parts of the world; the availability
of financing and lines of credit; successful integration of
acquired or merged businesses; changes in interest rates;
management's ability to forecast revenues and control expenses,
especially on a quarterly basis; unexpected decline in revenues
without a corresponding and timely slowdown in expense growth; the
Company's ability to retain key management and employees; intense
competition and the Company's ability to meet demand at competitive
prices and to continue to introduce new products and new versions
of existing products that keep pace with technological
developments, satisfy increasingly sophisticated customer
requirements and achieve market acceptance; relationships with
significant suppliers and customers; as well as other risks and
uncertainties, including but not limited to those detailed from
time to time in the Company's public filings on EDGAR and SEDAR.
The Company undertakes no obligation to update information
contained in this press release. For further information regarding
risks and uncertainties associated with the Company's business,
please refer to the risks and uncertainties detailed from time to
time in the Company's EDGAR and SEDAR filings.
Company
Contact:
Taz Turner
Chief Executive Officer
taz@cordovacann.com
(917)
843-2169
Investor
Contact:
Phil Carlson / Elizabeth Barker
KCSA
Strategic Communications
cordova@kcsa.com
(212)
896-1233
Media
Contact:
Anne Donohoe
KCSA
Strategic Communications
adonohoe@kcsa.com
(212)
896-1265