Chris Lowrey
LITCHFIELD April 17, 2018
LiveWell Foods Inc., the company behind the proposed cannabis growing facility in Litchfield, has announced a brokered private placement in the hopes of raising upwards of $10 million.
The deal, announced on April 17, says that LiveWell will partner with a group of agents to sell at least 10 million shares of the company.
Each share will be sold off for $1 in the hopes of generating at least $10 million to help with completion of LiveWell’s 108,000 square foot facility in Ottawa, as well as the 100,000 square foot Litchfield project.
The agents responsible for selling the shares have the option of selling additional shares totaling $1.5 million.
LiveWell also reaffirmed the plan to partner with Percy Street Capital Corporation to purchase all issued and outstanding securities of LiveWell.
A private placement is similar to an initial public offering.
With an initial public offering, a company selects a specific amount of shares to sell, which can be bought by anyone, hence the term “public.”
A private placement, on the other hand, is where the shares are sold to a small number of select investors. These investors usually include large banks, mutual funds and insurance companies.
Only accredited investors – usually high net-worth individuals, banks and financial institutions – can take part in the offering.
