Power Leaves Raises Over USD$2M in First Tranche of Private Placement and Provides Corporate Update

July 12, 2022 1:35 PM EDT | Source: Power Leaves Corp.

Toronto, Ontario--(Newsfile Corp. - July 12, 2022) - Power Leaves Corp. ("PLC" or the "Company') is pleased to announce that it has closed the first tranche of its non-brokered private placement (the "Offering") of units (the "Units"). Pursuant to the Offering, PLC issued an aggregate of 5,018,764 Units at a price of USD$0.45 per Unit (the "Issue Price") for gross proceeds of USD$2,258,444.

Pat McCutcheon, Chief Executive Officer and Chairman of PLC, commented, "Our capital raise is off to a very strong start under challenging market conditions. I'd like to thank all of our investors for their continued support. We are moving very quickly to develop our operations in Colombia and focus on revenue generation in the short term."

Terms of the Offering

Each Unit is comprised of one common share of PLC (a "PLC Common Share") and one-half of one common share purchase warrant (each whole warrant, a "PLC Warrant"). Each PLC Warrant entitles the holder thereof to acquire one PLC Common Share at a price of USD$0.60 for a period of 24 months following the closing date.

The Company proposes to raise additional funds in subsequent tranches of the Offering up to an aggregate total of USD$5M for the Offering.

All securities issued under the Offering are subject to a statutory hold period of four-months and one-day from the date PLC becomes a reporting issuer in any province or territory. The Company intends to use the net proceeds from the Offering for the continued development and expansion of its operations in Colombia and for working capital and general corporate purposes.

Corporate Update

PLC is the first North American company dedicated to the commercialization of the coca leaf. Recent highlights are as follows:

  • The Company secured an exclusive, renewable, 15-year agreement to legally de-cocainize extract and process the coca leaf in Colombia.
  • The Company raised over USD$6M in equity financing in Q1 2022.
  • Led by Pat McCutcheon, PLC has built a world class scientific team focused on its two main business lines, food & beverage bulk extracts and fertilizers.
  • PLC has built extraction and testing facilities in Colombia and corresponding supply chain to export its products to the United States, Europe and other large markets.
  • PLC has executed 10+ letters of intent to produce bulk extract for the food & beverage industry and fertilizer. PLC is working to advance these contracts to the definitive agreement stage and commence with commercial production.
  • Launching coca-based Organic and liquid BioFertilizer and taking leadership of the growing organic fertilizer segment within the $200B fertilizer market.
  • Colombia's President-Elect, Gustavo Petro campaigned on a plan to develop the Colombian agricultural industry with a focus on regulating the use of the coca leaf and supporting and promoting indigenous agricultural projects. This political and regulatory platform aligns with PLC's business model and PLC looks forward to working closely with the newly elected Colombian leadership.

PLC is growing quickly and will be providing further updates in the coming weeks.

For further information, please contact:

Pat McCutcheon
Power Leaves Corp. - CEO & Chairman
e: info@powerleaves.com
w: www.powerleaves.com

Cautionary Notes

This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected" "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could, "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this press release, forward-looking statements relate, among other things, to: the Offering and certain terms and conditions thereof, the Company's ability to close subsequent tranches of the Offering, the use of proceeds from the Offering, the Company's ability to enter into definitive supply agreements and generate revenue and the Company's corporate strategy. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive shareholder, director or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, PLC assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

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