HomeMarket NewsMicro Cap StocksThe Future of Cannabis: Xebra Brands Secures $1M Private Placement Deal

The Future of Cannabis: Xebra Brands Secures $1M Private Placement Deal

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In exciting news for cannabis enthusiasts and investors, Xebra Brands Ltd. (ticker: XBRA, OTCQB: XBRAF, FSE: 9YC) unveiled plans on Monday for a non-brokered private placement deal worth up to CA$1 million ($733,898). This strategic move follows a binding commitment from a major investor, setting the stage for Xebra’s continued growth and expansion in the booming cannabis market.

Breaking Down the Deal

Xebra Brands intends to offer up to 12 million units at CA$0.05 per unit, potentially raising CA$600,000 in gross proceeds. Additionally, the company plans to offer up to CA$400,000 of unsecured convertible debenture units. Each unit will consist of one common share of the company and one common share purchase warrant.

Investors who acquire unit warrants will have the right to purchase one common stake at CA$0.10 per unit warrant share within eighteen months of the unit offering’s closing. The CD (convertible debenture) offering includes debenture units comprising CA$1,000 in principal amount of unsecured convertible debenture and 20,000 common share purchase warrants. Each CD warrant allows holders to acquire one common share at an exercise price of CA$0.10 per share within eighteen months of the CD offering’s closing.

The CD debentures mature in thirty-six months from the date of issuance and will bear an 8% annual interest rate, paid semi-annually. They will not be redeemable by Xebra Brands. Furthermore, debenture holders have the option to convert their debentures into common shares at a conversion price of $0.05 per share before the maturity date.

What’s Next for Xebra Brands?

The unit offering is set to close on or around October 6, 2023, as determined by Xebra Brands. This major capital injection will fuel the company’s growth initiatives, including product development, marketing campaigns, and market expansion.

Xebra Brands continues to be a key player in the cannabis industry, positioning itself for long-term success in the evolving market landscape. Investors and industry watchers alike will be keen to see how this private placement deal propels the company forward in the coming months.

XBRAF Price Movement

In the wake of this announcement, Xebra’s shares experienced a slight decline, trading at $0.0275 per share at the time of writing on Tuesday. However, this dip presents potential investors with an opportunity to enter the market at an attractive price point.

Stay Informed

Stay tuned for more updates in the fast-paced world of cannabis investments. For the latest news and trends in the cannabis industry, check out our dedicated coverage at [Website Name] and be sure to follow Xebra Brands for future developments.

Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay

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