Herbal Dispatch arranges $1-million private placement

Executive Summary

• Herbal Dispatch Inc. announced a non-brokered private placement of up to 20 million units at $0.05 per unit, targeting gross proceeds of up to $1 million.
• The proceeds are designated for working capital to support anticipated export growth driven by strong customer interest.
• The transaction is subject to regulatory approval, including from the Canadian Securities Exchange (CSE), with closing expected before August 29, 2025.

Key Details

• Transaction Structure: Non-brokered private placement on a best-efforts basis.
• Units Offered: Up to 20,000,000 units.
• Price: $0.05 per unit.
• Gross Proceeds: Up to $1,000,000.
• Unit Composition: Each unit consists of one common share and one-half common share purchase warrant.
• Warrant Terms:
  • Each warrant is exercisable for one common share.
  • Exercise Price: $0.08 per share.
  • Duration: 24 months from the closing date.
  • Transferability: Warrants are transferable.
• Investor Eligibility: Restricted to accredited investors or other investors meeting exemption requirements for a non-brokered private placement.
• Use of Proceeds: Working capital to support the company's anticipated export growth.
• Closing Date: Expected to occur before August 29, 2025.
• Regulatory Conditions: Subject to receipt of all necessary regulatory approvals, including CSE approval.
• Oversubscription: Company reserves the right to accept additional funds if oversubscribed, subject to CSE approval.
• Hold Period: All securities issued are subject to a four-month hold period under Canadian securities laws.

Notable Quotes

• "As previously disclosed, Herbal Dispatch is currently experiencing strong customer interest in new export opportunities, which, if realized, could contribute to a strong financial performance in the second half of the year."