Alternate Health Closes First Tranche of Financing Agreement
TORONTO, July 5, 2019 /CNW/ - Alternate Health Corp., ("Alternate Health" or the "Company") (CSE:AHG) (OTCQB:AHGIF), an international leader in CBD extraction, product development and distribution, announced today that the Company closed the first tranche of its financing arrangement with Alpha Blue Ocean as initially announced on June 14, 2019 and June 17, 2019 (the "Financing"), pursuant to the terms of an amended and restated subscription agreement dated July 3, 2019 (the "Subscription Agreement").
Pursuant to the terms of the Subscription Agreement, as part of the closing of the first tranche of the Financing, the Company issued to European High Growth Opportunities Securitization Fund ("EHGO") a convertible debenture (the "Debenture") in the principal amount of $200,000 and share purchase warrants (the "Warrants") exercisable to acquire up to 3,121,212 common shares of the Company (the "Shares") for a period of three years at a price of $0.33 per Share. The Debenture and Warrants otherwise have the terms described in the June 14, 2019 news release. The Debentures and Warrants are subject to a hold period of four months and one day from issuance. Further terms of the Financing are set out in the Subscription Agreement as filed on SEDAR and available under the Company's profile at www.sedar.com.
The Company paid a cash finders' fee of 6% of the principal amount of the Debenture to an arms' length finder on the closing.
The Company expects to close a second tranche of the Financing within approximately one week at which time the Company expects to issue to EHGO a convertible debenture in the principal amount of $500,000 with a term of 12 months, together with accompanying share purchase warrants. Alternate Health intends to use the funds from this financing facility to expand its hemp-derived product line and for general working capital.
About Alternate Health
Alternate Health is an international leader in the hemp-derived CBD industry, including extraction, product development and distribution. Through Alternate Health's subsidiary, Blaine Labs, the Company has 23 years of experience in FDA-registered and cGMP medical product manufacturing and distribution, with over 50 product SKUs available from major retailers, including Walmart, Amazon, CVS and Walgreens. Alternate Health's innovative software systems provide the platform for the company's diverse operations, including CBD product distribution, hemp-derived extract manufacturing, blockchain tax collection systems and electronic medical records (EMR) platforms.
Alternate Health's corporate office is located in Toronto, Canada, with additional offices in Venice, 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. For more information about Alternate Health Corp., visit www.alternatehealth.com.
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, including with respect to the closing of the second tranche of the Financing, and the intended use of the proceeds of the Financing, 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 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: Jim Griffiths | Investor Relations; Jim Tykoliz | Company Director, 1.416.607.5757
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