The Tinley Beverage Co (CSE: TNY) this morning announced the closing of a non-brokered private placement which saw the company raise gross proceeds of $2.4 million. The financing is expected to enable the company to advance its co-packing and branded product growth.
Under the terms of the financing, the company raised gross proceeds of $2.4 million at a price of $0.33 per unit. Each unit contains one common share and one half of a common share purchase warrant. Each warrant is valid for a period of two years following the date of issuance, and contains an exercise price of $0.42 per share. A total of 7.3 million units were sold under the offering.
Proceeds from the offering are to be used for capital expenditures, marketing new business lines, exploring potential acquisitions, and for working capital.
“We are delighted to continue our track record of primarily attracting quality institutional investors to our financings. We believe that this reflects increasing confidence in the growth of our co-packing client list and volumes and in our continued ability to obtain listings with marquee dispensaries and mainstream retailers.”Ted Zittell, Director
The company this morning indicated as well that capital investments continue to expand the firms formulation types and packaging formats that can be produced at its flagship Long Beach, California facility. The company has seen strong growth in its copacking operation, which reportedly has significant bookings for both the mini line and the bottling line for the months of June and July.
The firms canning line meanwhile is anticipated to be completed this month, with client runs expected to commence next month. The heat tunnel pasteurization unit is also expected to begin running in July.
Tinley Beverage Co last traded at $0.34 on the CSE.
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