L’ASSOMPTION, Quebec, 24 Dec. 2021 (GLOBE NEWSWIRE) – Terranueva Corporation (CSE: TEQ) (“Terranueva” or the “Company”) is pleased to announce that it has agreed to debentures for a principal amount of $ 133,333 (the “Debentures”) maturing on March 31, 2023, convertible into ordinary shares of the share capital of Terranueva at a conversion price of $ 0.15 per share, subject to a holding period of four months and one day, as well as a demand credit facility of up to $ 700,000, bearing interest at 12% and repayable at any time without notice and penalty.
All parties deal remotely with Terranueva, except for the participation of a director, officer and significant shareholder of the Company described below, and no commission was payable. The proceeds from the financing will be used for the working capital of the Company.
A director, officer and significant shareholder acquired $ 66,666 in principal amount of Debentures, representing 50% of the private placement, and offered the entire credit facility, which has no impact on his undiluted interest in the Company (from 34.63% to 35.04% on a diluted basis if all of the manager’s convertible securities were converted). These Debentures and this insider credit facility constitute a related party transaction, but are exempt from the requirement to provide a formal valuation and to obtain the approval of minority holders under National Instrument 61-101 respecting Financial Measures. protection of minority holders during specific transactions, since neither the fair market value of the Debentures issued to insiders, nor the fair market value of the entire private placement, exceeds 25% of the market capitalization of the Company. The Company did not file a material change report with respect to insider participation at least 21 days prior to the closing date of the private placement, as such insider participation was not determined at that time.
Terranueva relies on research and development, innovation and operational efficiency to become a key player in the emerging cannabis industry. Its objective is to provide top quality medical and recreational cannabis to the Canadian and international market. To achieve its objective, Terranueva implements a modular production approach integrating the latest advances and innovations in the automation of these processes. Terranueva Pharma Corporation, its wholly owned subsidiary, holds the necessary licenses from Health Canada to carry out its mission.
To learn more about Terranueva, visit www.terranueva.ca.
CSE and its Regulation Services Provider (as that term is defined in CSE policies) assumes no responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Jean-Luc Landry, Executive Chairman of the Board, Telephone: (450) 591-1011