Humble & Fume Announces Completion of US$8 Million Private Placement to Advance Expansion into Cannabis Distribution in the United States


Humble & Fume Inc. (CSE: HMBL) (“Humble” or the “Company”), a leading North American distributor of cannabis and cannabis accessories, announced today that it has completed a US$8 million private placement from Green Acre Capital Distribution Corp. (“Green Acre”) for 18,795,471 common shares at a price of CDN$0.53 per share, representing 15.23% of the issued and outstanding common shares of Humble following completion of the private placement (the “Humble Equity”). Green Acre also intends to invest an additional US$2 million to form a Joint Venture (“JV”) with Humble focused on accelerating the Company’s expansion into cannabis distribution operations in California. Green Acre received funding for the private placement by entering into an option agreement (“First Option”) with Johnson Brothers, a leading wine, spirits, and beer distributor. Johnson Brothers purchased its rights under the First Option from Green Acre for US$8 million. Pursuant to the terms of the First Option, Johnson Brothers has the right to acquire the Humble Equity for nominal consideration once cannabis has been sufficiently federally legalized in the United States so that an equity investment by Johnson Brothers in Humble will not adversely impact United States federal and state beverage alcohol licenses held by Johnson Brothers or any of its subsidiaries or affiliates. Humble and Green Acre also intend to establish the JV which will engage in the business of cannabis distribution in the United States, initially in California. The JV will be funded through aggregate capital contributions of US$10M – US$8M to be provided by Humble using the private placement funds and US$2M by Green Acre. As a result, the JV will be owned 80/20 by Humble and Green Acre, respectively. Green Acre also acquired the right to increase its ownership in the JV to 50% by investing up to an additional US$8M over the next two years. Similarly to the private placement, Green Acre’s interest in the JV would be funded by Johnson Brothers in accordance with a second option agreement (“Second Option”) pursuant to which Johnson Brothers would have the right…

Excerpt only …
Source : Humble & Fume Announces Completion of US Million Private Placement to Advance Expansion into Cannabis Distribution in the United States

reposted by Cannabis News World

This site uses Akismet to reduce spam. Learn how your comment data is processed.