L’ASSOMPTION, Quebec, 24 Dec. 2021 (GLOBE NEWSWIRE) – Terranueva Corporation (CSE: TEQ) (“Terranueva” or the “Company”) is pleased to announce that it has accepted $ 133,333 in convertible debenture principal (the “Debentures”) due on March 31, 2023, convertible into ordinary shares of the capital stock of Terranueva at a conversion price of $ 0.15 per share subject to a holding period of four months and one day as well as a credit facility of up to plus to $ 700,000 at an interest rate of 12% and repayable at any time without notice or penalty.
All parties deal at arm’s length with Terranueva, except for the participation of a director, officer and significant shareholder of Terranueva described below, and no commission was payable. The proceeds will be used for the working capital of the Company.
A director, officer and significant shareholder of Terranueva has been issued $ 66,666 in debenture principal, which represents 50% of the private placement, and has offered the entire credit facility, which will have no impact on its undiluted stake in the Company (from 34.63% to 35.04% on a diluted basis if all of the director’s convertible securities were converted). The debentures and the insider credit facility are a related party transaction, but are exempt from the formal minority assessment and approval requirements of National Instrument 61-101 – Protection of Minority Securityholders in Special Transactions, because neither the fair market value of the units issued to insiders, nor the fair market value of the entire private placement, exceeds 25% of the market capitalization of the Company. The Company has not filed a material change report regarding insider participation at least 21 days prior to the private placement as the terms and conditions of insider participation have not been determined at that time.
Terranueva relies on research and development, innovation and operational efficiency to become a major player in the emerging cannabis industry. Their goal is to provide premium quality medicinal and recreational cannabis to the Canadian and international markets. To achieve this goal, Terranueva implements a modular production approach that incorporates the latest advances and innovations in process automation. Terranueva Pharma Corporation, its wholly owned subsidiary, holds the necessary licenses from Health Canada to carry out its mission.
To learn more about Terranueva, visit www.terranueva.ca
The CSE and its regulatory service providers (as that term is assigned in its policies) assume no responsibility for the adequacy or accuracy of this press release.
For more information please contact:
Jean-Luc Landry, Executive Chairman of the Board, Telephone: (450) 591-1011