Koios Beverage Corp. (OTC: KBEVF) (CSE: KBEV) is pleased to announce the Company has entered into an agreement (the “Agreement”) for a draw-down equity facility of up to $28,000,000. The Agreement provides for equity private placement offerings (each, an “Offering”), to be conducted between the Company and Alumina Partners (Ontario) Ltd. (“Alumina Partners”), a subsidiary of Alumina Partners LLC, a New York based private equity firm that has made significant investments in the cannabis sector, in draw-down amounts of up to $2,000,000.
The equity facility has been structured to best suit the Company’s rapid growth strategies while maintaining shareholder value. Each draw-down will be drawn upon at the sole discretion of Koios, allowing for the flexibility to access funds only when necessary. This strategy allows Koios to protect shareholder value while growing consumer awareness and meeting production demands for new and existing territories.
“In our minds, Alumina offers the ideal type of financing for a younger company like ours that faces rapid expansion, but also does not want to dilute their shareholders by taking on too much equity investment at lower valuations,” explained Koios CEO Chris Miller. This Agreement will allow us to comfortably fuel our expansion and help the Company execute its transition into profitable growth.”
“The most rapidly expanding and evolving markets – along with the highest gross margins – in the regulated cannabis space are presently in cannabinoid beverages,” said Adi Nahmani, Managing Member of Alumina Partners LLC. “We are pleased to stand behind Koios as they work to extend their commanding lead in this market and move to aggressively add new markets to their growing portfolio.”
All securities issued in connection with an Offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.
None of the securities issued in an Offering will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.
On behalf of the Board of Directors of the Company.
KOIOS BEVERAGE CORP.
Chris Miller, CEO and Director