Sunniva Inc. Secures Additional USD $5.0 Million in Purchase Orders For Sunniva Branded Cannabis Products
Ryan Allway
January 23rd, 2019
News
VANCOUVER, BC – January 22, 2019 – Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, is pleased to announce a CAD $10.0 million non-brokered offering (the “Financing”) of convertible debentures (“Convertible Debentures”) to provide additional working capital in response to higher than anticipated near-term demand for Sunniva branded cannabis products which includes an additional USD $5.0 million in retail dispensary purchase orders.
Including the initial USD $2.4 million cannabis purchase contracts which were announced on January 4, 2019, Sunniva now has secured a total of USD $7.6 million of near-term future sales contracts for Sunniva branded cannabis products in California. Sales commenced in January 2019, and these initial contracts are to be completed in the first fourth months of 2019. The contracts include purchases of the following Sunniva branded product lines: • Ultra-pure distillate products: 1.0 ml, 0.5 ml and 0.33 ml filled vape cartridges, live resin vape cartridges and disposables pens • Premium concentrates: live resin extracts, shatters, and waxes • Premium Flower
In advance of large-scale production at the Company’s greenhouse in Cathedral City, California, the Financing will be used to enable Sunniva to continue to secure additional clean biomass for the Company’s extraction facility, to obtain clean flower from strategic relationships and for general corporate purposes. Purchased flower is currently being packaged utilizing our large-scale automated packaging machines, branded and then sold to our retail clients, allowing Sunniva to capture significant margin in the flower category.
“Now that we have strengthened our position as a true vertically integrated cannabis company in California with our in-house distribution company and a growing retail network, we are recognizing significant demand for our Sunniva branded products, which is driving our company to a new level of growth. We are now revenue generating in California from sales of our branded products. Our focus is to continue to secure monthly purchase orders for our brands throughout the year with licensed California retailers as we continue to ramp up all our production capabilities. The Financing will enable us to run at full speed as we accelerate our growth throughout 2019,” stated Kevin Wilkerson, Chief Operating Officer of Sunniva’s California operations.
The Convertible Debentures issued under the Financing will have the following terms: • Term: 24 months; maturity date of February 15, 2021 • Interest Rate: 10% (paid annually) • Conversion Rights: Convertible into common shares of Sunniva at any time within the Term at the Conversion Price at the sole discretion of the holder • Conversion Price: CAD $5.27 per common share
Certain members of Sunniva’s senior management team are participating, collectively, for approximately 25% of the total Financing. Closing of the Financing is subject to the approval of the Canadian Securities Exchange and is expected to occur on or about February 8th, 2019.
The Convertible Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Convertible Debentures in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world’s two largest cannabis markets – California and Canada. Our ability to leverage our large-scale, purpose-built cGMP designed greenhouse, offering better quality assurance with cannabis products free from pesticides, uniquely positions Sunniva as a leading supplier of safe, high quality products at scale. Through our strategically positioned cultivation and extraction facilities in California, we are launching Sunniva branded products in various product categories including flower, pre-rolls, vape cartridges, and premium concentrates. Our compliant distribution in California will ensure the placement of Sunniva branded products at licenced dispensaries throughout the state. We continue to pursue other upstream vertical opportunities. Sunniva’s management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”), including, but not limited to, statements relating to the Company’s acceleration of growth in California and pursuit of upstream vertical opportunities, the sale of products and production from Sunniva’s extraction facility, the completion of the Company’s cannabis purchase contracts, the anticipated production and revenue from the extraction facility, the conditions for and timing of closing of the Financing and the use of proceeds from the Financing. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Company Contacts:
Sunniva Inc. Dr. Anthony Holler Chairman and Chief Executive Officer Phone: (866) 786-6482
Investor Contact: Media Contact: Phil Carlson / Erika Kay Katelyn Tumino KCSA Strategic Communications KCSA Strategic Communications Phone: (212) 896-1233 Phone: (212) 896-1252 Email: pcarlson@kcsa.com / ekay@kcsa.com Email: ktumino@kcsa.com
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
Search CannabisFN
Press Coverage
Psychedelics Index
Top Videos
Matthew Nordgren is an ambitious executive, dedicated philanthropist, and accomplished athlete who brings a unique passion to creating strategic alliances. He has breadth and depth of experience in finance, corporate development, and capital sourcing, as well as in building highly motivated teams of skilled professionals. In 2005, Mr. Nordgren received his education at the University […]
The producers of O’ Cannabiz have decades of experience producing national-profile events and creating global connections between business communities in the arts, broadcasting, media and technology. They have organized trade summit initiatives with governments around the world. And they have worked closely with sponsors in all levels of Canadian government.
Plus Products, through its wholly-owned subsidiary, Carberry, operates as a branded cannabis products manufacturer with operations in California.
Matthew (Matt) Karnes has over 20 years of diverse finance and accounting experience. Prior to founding GreenWave Advisors LLC, Matt worked in equity research focusing on the Radio Broadcasting and Cable Television industries for First Union Securities.
Network Partners
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.
Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer
