Honest Inc., dba Province Brands of Canada, a developer of non-alcoholic, cannabis-powered beers and spirits, has raised $10.95m in “Series A” financing (private placement) of convertible debentures with 91 accredited investors.
"We will invest the majority of the new funds into the construction and purchase of equipment for the world’s first cannabis brewery here in Canada,” Province Brands' director of business development and investor relations Elad Barak said.
Bennett Jones LLP acted as legal counsel to Province Brands of Canada. The company has now raised $15 million in funding since its inception.
The financing is part of Province Brands of Canada’s going public transaction. On April 27, 2018, Province Brands of Canada entered into a letter of intent (LOI) with Colson Capital Corporation pursuant to which Province Brands of Canada will go public on the TSX Venture Exchange through a reverse takeover (RTO) of Colson Capital Qualifying Transaction.
As part of the agreement, Province Brands was expected to complete a private placement of Series A unsecured, 8% convertible notes for gross proceeds of up to $11.5m.
Province Brands of Canada plans to raise between $20 to $30m in equity financing, which will coincide with its public listing.