NIAGARA-ON-THE-LAKE, ON - Diamond Estates Wines & Spirits Inc. ("Diamond Estates" or "the Company") (DWS-TSX Venture) today announced that it has entered into an agreement with Paradigm Capital Inc. ("Paradigm") pursuant to which Paradigm, as lead agent, together with a syndicate of agents including Acumen Capital Finance Partners Limited, (collectively with Paradigm, the "Agents") pursuant to which the Agents will sell by way of private placement on a marketed best efforts basis, up to 15,800,000 common shares (the "Common Shares") of the Company at a price of $0.19 per Common Share for gross proceeds of up to $3 million (the "Private Placement").
The Company has also granted the Agents an option, exercisable up to 48 hours prior to the closing of the Private Placement, to place up to an additional 2,370,000 Common Shares.
The Agents will receive a cash commission equal to 6% of the gross proceeds raised in the Private Placement from non-president's list subscribers, and 3% of the gross proceeds raised in the Private Placement from president's list subscribers.
The Private Placement is expected to close on or about October 22, 2019. The Private Placement is subject to regulatory approval, including TSX Venture Exchange acceptance. The Common Shares issued pursuant to the Private Placement will have a hold period of four months and one day from the date of issuance of such Common Shares.
The Company intends to use the net proceeds from the Private Placement to fund the expansion of Ontario sales and marketing efforts, the buildout of a winery facility in British Columbia and for general working capital purposes.
The securities have not been, and will not be, registered under the Unites States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state security laws, and may not be offered or sold in the Unites States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the Unites States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Source : CISION