LEEF Brands Strengthens Capital Through Share Consolidation
LEEF Brands Implements Share Consolidation for Growth
VANCOUVER, British Columbia — LEEF Brands, Inc. (“LEEF” or the “Company”) (CSE: LEEF) (OTC: LEEEF) recently revealed plans for a strategic 10-for-1 share consolidation alongside a private placement aiming to raise CAD $2,500,000. This initiative marks a pivotal step in refining the Company's capital structure and enhancing its appeal to a broader range of investors.
Understanding the Share Consolidation Process
The upcoming share consolidation will transform the Company’s issued and outstanding shares, where ten shares will convert into one post-consolidation share. This step is designed to promote a more robust trading environment, attracting institutional investors and delivering greater stability to the market. Post-consolidation, LEEF expects to have around 162.76 million shares outstanding.
Logistics of the Consolidation
Effective November 18, 2024, the Company anticipates that trading will begin on a consolidated basis across top exchanges. Registered shareholders will receive a letter of transmittal requiring them to exchange their existing shares for new ones. For those holding shares through brokers, the process will be more straightforward, removing the need for such steps.
Concurrent Private Placement Financing
In addition to the share consolidation, LEEF Brands aims to conduct a private placement, generating gross proceeds up to CAD $2.5 million through the issuance of 10 million units priced at $0.25 each. Each unit comprises one common share and one accompanying purchase warrant, enabling investors to secure additional shares at an exercise price of $0.40 for two years.
Utilizing Proceeds for Growth
The financing proceeds are earmarked to fuel LEEF’s growth strategies, particularly focusing on advancing its farm operations and tapping into new markets. This comprehensive approach underlines the Company’s commitment to expanding its footprint within the cannabis sector.
Leadership Perspective on Strategic Moves
Micah Anderson, the Chief Executive Officer of LEEF Brands, expressed confidence in these initiatives, stating, "This share consolidation and the concurrent financing will significantly refine our capital structure and equip us with essential resources to expedite our growth plans. We are optimistic that these steps will not only attract a wider investor base but also contribute to shareholders' value as we establish ourselves as a key player in cannabis concentrates production."
About LEEF Brands Inc.
LEEF Brands Inc. stands out as a prominent California-based extraction and manufacturing company in the cannabis sector. It is highly regarded for its extensive vertical integration and sophisticated operational capabilities. With an innovative supply chain and state-of-the-art manufacturing methodologies, LEEF backs some of California's leading brands, showcasing a dynamic range of bulk concentrates.
Frequently Asked Questions
What is the purpose of LEEF's share consolidation?
The share consolidation aims to improve the company's capital structure and enhance investor attractiveness.
How many shares will be outstanding after the consolidation?
Post-consolidation, LEEF expects to have approximately 162.76 million shares issued and outstanding.
What will shareholders need to do for the consolidation?
Registered shareholders will receive a letter of transmittal to return their pre-consolidation share certificates in exchange for new ones.
What is included in the private placement offering?
The private placement consists of 10 million units, with each unit priced at $0.25, incorporating one common share and one purchase warrant.
What are the intended uses for the funds raised from the financing?
Funds will be allocated to foster growth, particularly in enhancing farm operations and exploring new market opportunities.
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