On August 23, 2024, The Tinley Beverage Company Inc. provided an update on its private placement and debt settlement transactions, with an estimated total value of approximately CDN$8.3 million. The Private Placement is expected to involve the issuance of up to 9,997,720 units of the Company at a price of $0.18 per unit, generating around $1.8 million in gross proceeds. Meanwhile, the Debt Settlement is anticipated to settle approximately $6.5 million of the Company’s outstanding indebtedness to certain creditors, including secured debt owed to Tinley’s strategic partner, Blaze Life Holdings, LLC. This settlement involves the issuance of up to an additional 16,790,661 units and the transfer of Tinley’s bottling line to BLH at a deemed price of approximately $3.5 million.
Each unit consists of five common shares and five common share purchase warrants, with each warrant exercisable into one share at a price of $0.05 per share for three years from the closing date. The Private Placement and Debt Settlement are expected to close around September 6, 2024. It is important to note that this press release does not constitute an offer to sell securities in the United States or any jurisdiction where such an offer would be unlawful. The securities mentioned have not been registered under the United States Securities Act of 1933 and are subject to certain restrictions.
This news release contains forward-looking statements within the meaning of applicable Canadian securities laws. These statements are not historical facts, but rather projections, estimates, and intentions for the Company’s future business operations. Various factors could cause actual results to deviate from these forward-looking statements, including production timing, approval timing, financing availability, market changes, inflation, exchange rate fluctuations, input cost variations, and consumer preferences. It is advisable not to place excessive reliance on forward-looking statements, as they are subject to risks and uncertainties. The Company assumes no obligation to update or revise these statements, except as required by law. Products, formulations, and schedules discussed in this release are subject to change.
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