William Sumner
High Hampton Holdings Corp. (HC), a cannabis investment company focused on the California market announced today that it had closed a previously announced a non-brokered private placement of 31,703,565 units of the company, valued at $19 million.
One unit of the company consists of a common share of the company and one common share purchase warrant. Each warrant allows the holder to purchase one common share of the company at a price of $0.90 per share for a two year period following the closing of the offering.
As part of the offering, the company paid eligible finders a sum total of $1,129,286 and 1,723,814 non-transferable finder’s warrants. Much like the common share purchase warrant, each finder’s warrant entitles the holder to one common share, valued at $0.90 per share, for a two year period following the closing of the offering.
The securities issued in this offering will not be registered under the United States Securities Act of 1933, and none of the securities will be purchased or sold in the United States barring applicable exemptions.
Additionally, find company insiders were issued 840,000 units of the company, which constitutes as a “related party transaction” as defined by the Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101). The issuance is exempt from formal valuation and does not require minority shareholder approval as the issuance’s fair market value does not exceed 25% of the Company’s market capitalization.
In a statement, High Hampton CEO David E. Argudo thanked the company’s shareholders for their continued support.
“It represents a strong vote of confidence for our company and team to deliver on High Hampton’s near and long-term goals,” said Argudo. “Our strategic plan for 2018 is laid out, and we are now in an excellent financial position to aggressively pursue its execution and create sustainable value for our shareholders.”
The company will use the proceeds from the offering to finance growth, complete phase one of its Coachella development, and for general and corporate purposes.
