Alternate Health Announces Private Placement
TORONTO, Jan. 29, 2019 /CNW/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in technology solutions for the regulated cannabis industry, wishes to announce that it is undertaking a non-brokered private placement (the "Private Placement") of unsecured convertible notes (the "Notes") under prospectus exemptions available under applicable securities legislation in the aggregate principal amount of up to CAD$12,000,000 (USD$9,000,000), maturing and payable on the date that is three years from the date of issuance (the "Maturity Date").
The Notes will bear simple interest at a rate of 8.5% per annum. Interest will accrue and be payable on the Maturity Date. At the Noteholders' option, the Notes and accrued interest may be converted into common shares (the "Shares") at a price of CDN $0.65 Share if within one year of closing and $1.00 thereafter (the "Conversion Price"), subject to the policies of the Canadian Securities Exchange (the "Exchange").
The private placement proceeds will assist in funding Alternate Health's expansion into California's adult-use cannabis industry, including key acquisitions. With licensed facilities in Los Angeles and Humboldt County, Alternate Health is actively marketing the Company's software to leading players in the industry. In addition to funding expansion opportunities in product distribution and CBD marketing, private placement proceeds will be used in Alternate Health's CanaPass business and for general working capital purposes.
"Our Company is hard at work, building relationships with strategic partners and evaluating lucrative acquisition opportunities in California," says Howard Mann, CEO of Alternate Health. "Proceeds from this private placement ensure the rapid expansion of our products and technology in this exciting industry."
Alternate Health is engaging in this private placement as an alternative to the previously announced debt placement by Agincourt Ventures. Due to immediate funding issues unrelated to Alternate, Agincourt is currently unable to make its equity placement and loan to the Company. Management is seeking legal advice with respect to this commitment default.
About Alternate Health
Alternate Health (CSE: AHG, OTCQB: AHGIF) is an international cannabis company, focusing on technology and value-added services. Alternate Health's industry-leading software systems provide the platform for the company's diverse operations, including distribution and the first medial cannabis software portal approved by the Florida Department of Health.
Alternate Health's corporate office is located in Toronto, Canada, with additional offices in Venice and Humboldt County, California and San Antonio, Texas. The Company is well positioned to reinvest internal operating cash flow in its platform and product development over the long term, creating an attractive investment profile for its shareholders. Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals, AXIM Biotechnologies Inc., and Canopy Growth Corporation. For more information about Alternate Health Corp., visit www.alternatehealth.ca.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects, anticipated growth and potential revenues are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Alternate Health Corp.
Investor Contact: George Mull, Director, President, 1.416.607.5757
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