(XCX.V) June 12, 2019 – Chinook Tyee Industry Limited has completed its Series A non-brokered placement of 10 million common shares at a subscription price of $0.15 per share, raising $1.5 million which Chinook intends to use for working capital purposes. All securities issued pursuant to the private placement will be subject to a four-month hold period which will expire on Oct. 13.
“Our Series A financing was oversubscribed and we thank investors in Germany and Canada for their support,” said CEO Alex Blodgett. “Chinook’s insiders invested the maximum level allowed and are excited about developments ahead.”
Chinook paid a cash finder’s fee of $16,189.25 and issued 107,928 finder’s warrants to PI Financial Corp., and paid a cash finder’s fee of $19,845.00 and issued 132,300 finder’s warrants to General Research GmbH. Each finder’s warrant entitles the holder to acquire one additional common share at a price of $0.15 for a period of six months from the date of issuance.
The private placement constitutes a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Shareholders in Special Transactions), as insiders of Chinook subscribed for an aggregate of 2,536,842 common shares for gross proceeds of $380,526. Chinook is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the private placement by insiders did not exceed 25 percent of the market capitalization of Chinook, as determined in accordance with MI 61-101. Chinook did not file a material-change report in respect of the related-party transaction at least 21 days before the closing of the private placement as the details of the participation by related parties of Chinook were not settled until shortly prior to the closing of the private placement.
Chinook Tyee Industry is a German-managed investment company with two European subsidiaries, AMP Alternative Medical Products GmbH (AMP Germany) and Mercury Partners & Company plc. AMP Germany business is to import pharmaceutical grade (EU-GMP) cannabis produced by Canadian licensed producers into Germany. In cooperation with its business partners, AMP Germany will provide EU-GMP audit, logistical, transportation, importation and other related services for the importation of medical cannabis into Germany.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.