- HempFusion closed a financing deal of 28.8 million units.
- The company aims to use the capital for brand awareness, the launch of at least 20 new products, and more.
HempFusion has over 3,400 retailers that sell their CBD products, but they have much more to celebrate today. According to a press release from PR Newswire, the company has officially closed a deal involving 28.8 million units of the company, priced at $1.25 each. This deal resulted in a total of $36 million for gross proceeds. The brokered portion of this offering accounted for $32,784,563 in gross proceeds, completed by agents from Canaccord Genuity Corp. With the demand involved, the original proceeds of $20 million were increased to $36 million.
With the Offering, HempFusion has raised $42 million in this year. With funds on hand, the company is hoping to put this Offering towards:
- Providing capital for scalability projects
- Expanding beyond the 3,400 retailers that currently distribute the products
- Improving and change the current e-commerce platform of the company
- Launching at least 20 new products in the HempFusion product line by the end of the year
- Speeding up M&A activity
- Marketing and brand awareness
- Increasing sales for all channels of revenue
- Researching and creating new development initiatives
Every unit accounts for a common share and half of a common share purchase warrant. The warrant makes it possible for the holder to purchase the common share at the exercise price, which is presently $7 per warrant share. This price can change with different events, including if the issue price of any public-related transaction is less than $7 per share. Still, the company plants to list the warrants on the exchange whenever a common share is listed for sale, to the best of its ability, to maintain the current price.
Ian deQueiroz, the co-founder and CEO of Hemp Fusion, expressed that the new partnership involving RADD Capital makes it possible for his company to have the capital it needs to continue their expansions. He called the closing of the $36 million financing “a pivotal moment” for the whole of the company, adding that it is a “testament to our team’s ability to execute our business plan.”
Jason Mitchell, N.D, the co-founder and President of HempFusion, stated that,
“The constant goal of the company is to offer the “best-in-class customer experience, quality products that work, and peace of mind.” By completing the financing, Mitchell reiterated that the company can continue with their expansion, as well as “provide a more robust and comprehensive product education platform and continue expanding our sales and marketing initiatives to reach more consumers globally than ever before.”
Based on the US Securities Act, the securities involved with this offering are “restricted securities,” according to Rule 144(a)(3). To learn more information about the HempFusion brand, visit www.hempfusion.com.