TSX-V: HEMP
VANCOUVER, Jan. 18, 2019 /CNW/ - Hempco Food and Fiber
Inc. (TSX.V: HEMP) ("Hempco®" or the "Company")
is pleased to announce it has completed an agreement with
Aurora Cannabis Inc. ("Aurora") for a
non-brokered, private placement of a C$5
million non-transferable, secured, convertible debenture. As
previously disclosed on December 21, 2018, the Company
has drawn C$3 million against the
C$5 million loan for general
corporate purposes.
Principal amounts outstanding from time-to-time will bear simple
interest at a rate of eight percent (8%) per annum until the
principal amount is repaid or converted. The debenture will mature
on the second anniversary of the date of issue. Aurora will
have the right to convert the principal balance into common shares
of Hempco (each, a "Hempco Share") at a conversion price of
$1.18 per Hempco Share. At
Aurora's election, it may also convert the simple interest into
Hempco Shares at a conversion price equal to the market price for
Hempco Shares in effect on the date of the notice of conversion.
Aurora currently holds a 52% interest in Hempco and, if fully
converted, excluding interest, would hold 55% of Hempco's
outstanding shares.
The convertible debenture will be secured by a general security
agreement and a guaranty from Hempco's wholly owned subsidiary,
Hempco Canada Superfoods Inc. ("Superfoods"). The
guaranty will be secured by a general security agreement from
Superfoods.
"The agreement provides us with access to additional funds to
accelerate execution of our Five-Prong Growth Strategy, which
includes the development of new markets, the introduction of new
product innovations, as well as capitalizing on global tri-crop
opportunities," said Diane Jang,
CEO, Hempco Food and Fiber Inc. "With our new Nisku plant anticipated to commence operations
and ramp up this coming spring, we are well positioned to execute
and pursue accelerated growth."
The convertible debenture and any Hempco Shares issued upon
conversion will be subject to a four-month hold period under
applicable securities laws.
The issuance of the convertible debenture is finalized, subject
to approval by TSX Venture.
About Hempco
For more than 12 years Hempco has been a trusted and respected
pioneer, innovator and provider of quality hemp-based foods, hemp
fiber and hemp nutraceuticals. Hempco produces and markets the
brands PLANET HEMP ™ and PRAISE, hemp-based foods and
nutritional supplements for people and animals. Hempco is
expanding its processing ability to meet global demands in a 56,000
sq. ft. facility located at Nisku, Alberta. Hempco's
common shares trade on the TSX Venture Exchange under the symbol
"HEMP".
The TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). 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. Forward-looking statements in this press
release include the Company's anticipation of further growth. These
statements are only predictions and are not guarantees of
future performance; therefore, undue reliance should not be placed
on them. Such forward-looking statements necessarily involve known
and unknown risks and uncertainties, which may cause actual
performance and financial results in future periods to differ
materially from any projections of future performance or result
expressed or implied by such forward-looking
statements. Various assumptions were used in drawing
the conclusions or making the projections contained in the
forward-looking statements throughout this news release.
Forward-looking statements are based on the opinions and estimates
of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from
those projected in the forward-looking statements. The Companies
are 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.
On behalf of the Board of Directors,
HEMPCO FOOD AND FIBER INC.
Diane Jang
CEO
SOURCE Hempco Food and Fiber Inc.