RISE Life Science Corp. (CSE: RLSC) is pleased to announce that it has completed a second tranche of its offering previously announced on November 14, 2018 of unsecured convertible notes, raising an additional C$1,490,000. Pursuant to the Offering, the Company has now raised an aggregate of $5,525,000.
The Notes will accrue interest at a rate of 12% per year, paid quarterly in cash to the holders of the Notes. The maximum term of the Notes is 24 months. The minimum term of the Notes is twelve months, after which time the Company can repay the principal amount of the Notes and any accrued but unpaid interest without penalty or bonus.
At any time prior to repayment of Notes by the Company, the outstanding principal amount of each Note and any accrued and unpaid interest is convertible at the sole discretion of the noteholder into common shares of the Company at the conversion price of C$0.15 per share. In addition, Notes are convertible by the Company in its discretion into Common Shares at the conversion price of C$0.15 per share in the event that the Common Shares trade at C$0.35 or more for 21 or more consecutive trading days on the Canadian Securities Exchange.
The purchasers of the Notes in this second tranche closing were also issued an aggregate of 9,932,340 Common Share purchase warrants of the Company (“Warrants”), each Warrant exercisable for 24 months from the date of issue for C$0.15 per Warrant, into (i) one Common Share, and (ii) one half of one Common Share purchase warrant (each whole such warrant a “Bonus Warrant”). Each Bonus Warrant shall be exercisable into one Common Share at an exercise price of C$0.20 per share and shall expire 12 months from the date of its issuance.
The proceeds from the Offering will be used to finance the fulfillment of existing and expected orders for RISE’s CBD-based products, and for general working capital purposes as the company continues to execute its growth strategy.
The Notes were sold pursuant to applicable registration and prospectus exemptions to qualified investors.
This press release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
About RISE Life Science Corp.
RISE is currently developing and evolving medical and adult-use hemp-based formulations to create general use health and well-being products for the emerging consumer category made possible by legal U.S. Farm Bill compliant hemp. The Company launched its CBD-based sexual wellness brand, Karezza in June 2018. The acquisition of Life Bloom Organics in July 2018 expanded RISE’s portfolio of CBD products from sexual health and wellness products to include general wellness and sleep products and provides access to Life Bloom’s existing channels of distribution and production in the United States and California in particular. RISE also leverages Life Bloom’s proprietary process of nanotizing CBD for increased bioavailability (without psychoactivity) in future products created under the RISE brand umbrella.
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