On September 3, 2024, The Tinley Beverage Company Inc. (CSE: TNY) (OTCQB: TNYBF) announced the successful completion of a non-brokered private placement and debt settlement. The private placement involved the issuance of 9,997,720 units at a price of $0.18 per unit, generating gross proceeds of approximately $1.8 million. Additionally, the company settled approximately $6.5 million in outstanding debts through the issuance of an additional 16,790,661 units and the transfer of Tinley’s bottling line to Blaze Life Holdings, LLC (BLH) at a deemed price of $3.5 million.
The company issued a total of 26,788,381 units as part of the private placement and debt settlement. Each unit included five common shares and five common share purchase warrants. Insiders of the company subscribed for 3,627,472 units, while $5.4 million of the debt settlement involved insiders of the company.
The debt settlement allowed the company to eliminate all indebtedness under its secured convertible grid note issued to BLH and another secured convertible note issued to Richard Gillis. CEO Larry Weintraub expressed excitement about the company’s progress and the capital raised to support marketing efforts, product innovation, and meeting growing demand.
BLH became a new control person of the company as a result of the debt settlement, owning approximately 18.40% of the total issued and outstanding common shares. The company utilized exemptions under the Canadian Securities Exchange policies to complete the insider subscriptions and settlements.
The net proceeds from the private placement will be used to support the company’s ongoing business initiatives and general corporate purposes. Certain units are subject to hold periods under Canadian securities laws. The company emphasized that this press release is not an offer to sell securities in the United States.
The news release contains forward-looking statements related to the company’s future business and operations. These statements are subject to risks and uncertainties, and the company assumes no responsibility to update them except as required by law. Products, formulations, and timelines outlined in the release are subject to change.
