Leef Brands closes $2.09-million private placement

Executive Summary

• Leef Brands Inc. has closed an oversubscribed private placement, raising gross proceeds of CAD $2,090,890.
• The offering was approximately twice the size of the original expectation, resulting in the issuance of 8,363,560 units at a price of 25 cents per unit.
• The company plans to use the capital to expand its presence in New York and enhance production at its California farm, positioning itself for potential market shifts following federal cannabis rescheduling.

Key Details

• Gross Proceeds: CAD $2,090,890.
• Units Issued: 8,363,560 units.
• Price Per Unit: 25 cents.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one additional common share at an exercise price of 30 cents.
• Warrant Expiry: 24 months from the closing date.
• Regulatory Basis: Conducted pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 (Prospectus Exemptions).
• Hold Period: Securities are not subject to a statutory hold period under applicable Canadian securities laws.
• Insider Participation: CEO Micah Anderson and CFO Kevin Wilson participated in the offering as related-party transactions.
• MI 61-101 Exemption: The company relied on sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101, exempting the transaction from formal valuation and minority shareholder approval requirements as the insider purchase value did not exceed 25% of the company's market capitalization.
• Additional Share Issuances:
  • 272,000 common shares issued to a service provider for services rendered.
  • 36,000 common shares issued upon the exercise of employee stock options.

Notable Quotes

• "We are grateful for the strong support from our investors, which has enabled us to close this offering at twice our original expectation," said Micah Anderson, chief executive officer of Leef Brands.
• "With this financing, we are in a stronger position to accelerate our growth in two key markets: expanding our New York footprint and enhancing production at our California farm," said Kevin Wilson, chief financial officer of Leef Brands.