Eastwest BioScience Announces Private Placement and Changes to the Board of Directors
The new director brings business leadership and business development expertise for the cannabis industry to Eastwest’s Board of Directors.
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Vancouver, British Columbia (FSCwire) - Harbour Star Capital Corp. dba Eastwest BioScience Inc (TSXV:EAST) (“Eastwest” or the “Company“) is pleased to announce the offering of a non-brokered private placement of $800,000 in units ("Units"). There is no minimum subscription for this offering and a maximum of 2,909,090 Units will be issued at a price of $0.275 per Unit. Each Unit will consist of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant would entitle the holder to purchase one additional Common Share at an exercise price of $0.50 for a period of one year from the date of issuance of the Warrant. In addition, the Warrants will be subject to an acceleration clause whereby if, following the Closing Date, the 10-day volume weight average trading price of the Common Shares of the Corporation on the principal market on which such shares trade is equal to or exceeds CDN$0.75 (with the 10th such trading date hereafter referred to as the "Eligible Acceleration Date"), the Warrant expiry date shall accelerate to the date which is 30 calendar days following the date a press release is issued by the Corporation announcing the reduced warrant term, provided, no more than five business days following the Eligible Acceleration Date: (i) the press release is issued; and (ii) notices are sent to all warrant holders.
The Company may pay finder’s fees on all or a portion of the private placement to eligible persons seeking subscribers to the financing, all in accordance with applicable securities laws and the policies of the TSX Venture Exchange (the "Exchange").
The proposed private placement is subject to receipt of all necessary regulatory approvals including the approval of the Exchange. The Company confirms that, as of the date of this press release, there is no "material fact" or "material change" (as those terms are defined under applicable securities laws) related to the Company which has not been generally disclosed.
Assuming the maximum offering is completed, the net proceeds are expected to be used for strategic acquisitions, a continued build-out of the Company’s product lines and general working capital.
In addition, the Company announces that the board of directors has appointed Mr. Nathan Lidder to Eastwest’s board of directors, replacing Mr. John MacPhail who has resigned. Mr. Lidder’s appointment remains subject to the approval of the TSX Venture Exchange.
Mr. Lidder brings to the Company strategic legal, regulatory and operational expertise for business operations in Canada’s cannabis sector. Mr. Lidder has a Juris Doctorate from the University of Saskatchewan, a B.A. in Political Science from the University of Northern British Columbia, and an Honors Criminology Diploma from the College of New Caledonia. He was one of the first lawyers in British Columbia to begin practicing law involving cannabis and was the founding lawyer for Coal Harbour Law, a cannabis-focused law firm based in Vancouver BC that includes practice in corporate, estate and criminal law. He has provided counsel for some of BC’s largest medicinal cannabis dispensaries and growing operations. He was appointed to Eastwest’s Advisory Board in 2016 and has been providing valuable risk management counsel and strategic business advice since the Company’s inception. He has trial experience, advocating before the BC Court of Appeal as well as conducting trials at the Provincial Courts of British Columbia and Saskatchewan and the BC Supreme Court.
“I’m thrilled to welcome Nathan to our Board,” said Eastwest CEO Rodney Gelineau. “He will be invaluable to our Board, management team and shareholders as we enter the next phase of our growth strategy.”
“I’ve been partnered with Eastwest since its inception, and it’s been gratifying to see the Company’s strong and steady business development over the past few months,” says Mr. Lidder. “In this new level of involvement, I’m looking forward to diving deeper into the Company’s strategic development and helping put my experience to work during for its next important expansion phases.”
The board of EastWest would like to thank Mr. MacPhail for his contributions to the company both before and after its public listing.
About EastWest BioScience Group
EastWest Bioscience is a seed-to-sale organization that offers world class manufacturing and premium hemp-based consumer goods. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium hemp products. EastWest is strategically positioned in mainstream consumer markets with wholistic natural products and has developed distribution channels into mainstream stores and markets in Canada. The Company has a Health Canada licensed, GMP (Good Manufacturing Practices) certified manufacturing facility and produces premium brands offering natural products for a preventive care lifestyle. EastWest consumer product lines are divided into four distinct brands: 1) Natural Advancement – natural biopharmaceutical health supplements; 2) Earth’s Menu – all-natural hemp superfoods; 3) Natural Pet Science – pet food and pet supplements; and 4) Chanvre Hemp – all-natural health and beauty products. The organization will continue to focus on ongoing development of innovative, hemp-based consumer products through advanced science with clean, natural ingredients to complement its current product offerings.
For investor information and inquiries, please contact EastWest Bioscience Corporate Communications and Investor Relations at firstname.lastname@example.org
Toll free: 1-800-409-1930 ext. 200
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
Co-Founder, Chief Executive Officer and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS PRESS RELEASE DOES NOT CONSTITUE AN OFFER TO SELL SECURITIES OR A SOLICITATION FOR PURCHASERS TO BUY SECURITIES AND IS BEING ISSUED TO COMPLY WITH REGULATORY REQUIEMENTS. THIS PRESS RELEASE IS NOT TO BE CONSTRUED AS A PUBLIC OFFERING IN ANY PROVINCE IN CANADA UNLESS A PROSPECTUS RELATING THERETO HAS BEEN ACCEPTED FOR FILING BY A SECURITIES COMMISSION OR SIMILAR AUTHORITY IN SUCH PROVINCE.
Source: EastWest BioScience Group (TSX Venture:EAST)
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