- CE Brands (CEBI) has secured binding commitments for a $4 million private placement
- The private placement is led by investment entities managed or advised by Vesta Wealth Partners
- The investors will have the potential to upsize the private placement by an additional $2 million
- The company has also announced a non-brokered private placement equity financing for gross proceeds of $1.4 million
- Both financings are expected to close on November 12, 2021
- CE Brands Inc. develops products with leading manufacturers and iconic brand licensors
- CE Brands Inc. (CEBI) is up 3.45 per cent, trading at $0.60 per share
CE Brands (CEBI) has secured binding commitments for a $4 million private placement led by Vesta Wealth Partners.
The private placement will consist of senior secured capital notes and is led by investment entities managed or advised by Vesta Wealth Partners. The investors will have the potential to upsize the private placement by an additional $2 million.
The company has also entered into subscription agreements under a non-brokered private placement equity financing for gross proceeds of $1.4 million.
“These financings,” said CE Brands CEO Craig Smith, “will significantly improve CE Brands’ financial position, strengthen our business, and position CE Brands to overcome our current working capital constraints due to the operational and logistical challenges in Asia.”
“With these financings,” added Mr. Smith, “CE Brands believes that it now has access to appropriate near-term working capital and does not anticipate raising further financing at this time.”
The convertible notes will be issued on or about November 12, 2021, and will gain 15 per cent interest per year, payable on the first and second anniversary of the issue date. They may be converted into common shares at $1.50 per share prior to the second anniversary of the issue date.
Investors may purchase an additional $2 million principal amount of convertible notes at any time up to six months past the closing date.
In connection with the equity financing, CE Brands will issue up to 2.5 million common shares at $0.56 per share for gross proceeds of $1.4 million.
The equity financing is also expected to close on November 12 and both transactions are subject to the approval of the TSX Venture Exchange.
CE Brands Inc. develops products with leading manufacturers and iconic brand licensors using proprietary data that identifies key market opportunities.
The company operates in over 70 countries using the “CE Method,” an innovative process that has created an optimal growth path for CE Brands as a premier brand manufacturer.
CE Brands Inc. (CEBI) is up 3.45 per cent, trading at $0.60 per share as of 3:56 pm ET.
