Prime Drink Group Announces Private Placement and Agreed Resolution with Creditors

Executive Summary

• Prime Drink Group Corp. is proceeding with a non-brokered private placement offering of units to raise between $1.2 million and $2.2 million in gross proceeds.
• Each unit is priced at $10,000 and consists of 200,000 common shares and 200,000 transferable share purchase warrants.
• Net proceeds will be primarily allocated to finalize an agreed settlement with creditors ($1.0 million), with the remaining balance designated for general working capital.

Key Details

• Gross Proceeds: Minimum of $1,200,000 and maximum of $2,200,000.
• Unit Price: $10,000 per Unit.
• Unit Composition: Each Unit comprises 200,000 Common Shares and 200,000 transferable share purchase warrants.
• Common Share Issuance: Minimum of 24,000,000 shares and maximum of 44,000,000 shares.
• Deemed Price Per Share: $0.05.
• Warrant Issuance: Minimum of 24,000,000 warrants and maximum of 44,000,000 warrants.
• Warrant Exercise Price: $0.10 per Common Share.
• Warrant Term: One (1) year from the date of issuance.
• Use of Proceeds: $1.0 million allocated to finalize an agreed settlement with creditors; balance allocated to general working capital purposes.
• Regulatory Status: Subject to final approval of the Canadian Securities Exchange (CSE) and any other applicable regulatory approvals.
• Resale Restrictions: Securities are subject to a hold period of four months and one day from the date of issuance in accordance with Canadian securities laws.
• Offering Structure: Non-brokered private placement offered pursuant to exemptions from prospectus requirements under applicable securities laws.