Tetra Bio-Pharma (TSXV: TBP) announced this morning that a subsidiary of the firm has obtained financing for its Hemp Energy Drink. The financing comes in the form of a convertible debenture to the tune of $3,000,000, which will enable the subsidiary to purchase the full rights to the drink formulation.
With the financing being conducted through that of Tetra Bio-Pharma’s subsidiary, 2714140 Ontario Inc, no details were provided on the financing itself. It’s unclear what portion of the company Tetra would maintain should the full debenture be converted into equity into the currently wholly owned subsidiary. Tetra maintained that 2714140 Ontario Inc remains a fully owned subsidiary of the firm, however it is unclear how long this will hold true for.
Despite the financing, the assets related to Hemp Energy Drink are still for sale. This was originally announced by the firm at the end of August 2019.
We are thrilled to secure financing for the HED business that is, importantly, not dilutive to current Tetra shareholders. We believe the Hemp Energy Drink business can grow much faster in the hands of a team focused on the beverage industry and the use of proceeds from this financing will increase the attractiveness of the asset, and we believe will eventually yield a higher price in the event of a sale.
Guy Chamberland, CEO and Chief Regulatory Officer of Tetra Bio-Pharma Inc
Funding from the convertible note is expected to enable Tetra’s subsidiary to manufacture and distribute the Hemp beverage worldwide while funding ongoing operations.
Tetra Bio-Pharma last traded at $0.20 on the TSX Venture.
Information for this briefing was found via Sedar and Tetra Bio-Pharma. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
