EVIO Inc. Announces Private Placement of Up to US $3,000,000 in Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - December 6, 2017) - EVIO, Inc. (OTCQB: EVIO) (the "Company"), a life science company and leading provider of quality control testing and advisory services to the regulated cannabis industry, is pleased to announce that it has engaged Dominick Capital Corporation as lead agent and bookrunner (the "Lead Agent") for the private placement (the "Offering") of up to US $3,000,000 of convertible debenture units ("Units") at a subscription price of US $1,000 per Unit. Each Unit will consist of one convertible debenture (a "Debenture") with a principal face value of $1,000 (the "Principal Amount") and 250 share purchase warrants (each, a "Warrant").
The Debentures will bear interest on the Principal Amount at the rate of 8% per annum, paid quarterly in arrears until maturity or until conversion and will mature 36 months from the date of closing of the Offering ("Closing"). Each Debenture is convertible into common shares ("Common Shares") in the capital of the Company at a conversion price of US $0.60 per Common Share. Each whole Warrant will entitle the holder thereof to purchase one additional Common Share in the capital of the Company (each a "Warrant Share") at an exercise price of US $0.80 per Warrant Share for a period of 24 months after Closing.
The Lead Agent shall receive a cash commission equal to 6% of the proceeds raised under the Offering, as well as non-transferable warrants ("Broker Warrants") equal to 6.0% of the total number of common shares into which the convertible debentures issued under the Offering may be converted. Each Broker Warrant entitles the holder thereof to purchase one additional common share ("Broker Warrant Share") of the Company at a price of US $.60 per Broker Warrant Share for a period of 24 months from the issue date. Up to 4% of the cash commission and the Broker Warrants shall be allocated as a selling commission.
The Offering will be made on a reasonable best efforts basis with closing expected to occur on or about December 29, 2017.
Net proceeds of the Offering will be used for working capital, the expansion of the operations of the Company and for general corporate purposes.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to a U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements.
About EVIO, Inc.
EVIO, Inc. is a life science company focused on advancing and analyzing cannabis as a means for improving quality of life. The Company provides analytical testing services, advisory services and performs product research in its accredited laboratory testing facilities. The Company's EVIO Labs division operating coast-to-coast provides state-mandated ancillary services to ensure the safety and quality of the nation's cannabis supply.
For more information, visit www.eviolabs.com
Disclaimer in regards to Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, EVIO Labs does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
Any statements in this press release that are not statements of historical fact maybe considered to be forward-looking statements. Statements may contain certain forward-looking statements pertaining to future anticipated or projected plans, performance and developments, as well as other statements relating to future operations and results. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, our ability to complete our product testing and launch our product commercially, the acceptance of our product in the marketplace, the uncertainty of the laws and regulations relating to cannabis, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in our reports filed with the Securities and Exchange Commission, available at www.sec.gov or www.eviolabs.com
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