Canadian cannabis beverage company CENTR Brands Corp. announced today it has raised just over $3.5 million (approximately C$4.5 million) after completing a non-brokered private placement financing.
According to a press release, the net proceeds of the new financing will be used for “growth-oriented production, continued expansion of the recently launched online channel, new product innovation, and general working capital.”
What is CENTR Brands?
While it maybe hasn’t grabbed the same level of marketing attention as brands like Recess or Vybes, Vancouver-based publicly traded CENTR Brands has quietly established itself as the best-selling CBD beverage in the U.S., taking a 2.87% share in the category and leading a market set to reach $657 million by the end of 2023, according to data from Brightfield Group. CENTR, which works with Seattle-based supplier SORSE, offers two varieties (original and sugar-free) of its sparkling, citrus-flavored drinks with 30mg CBD and 40 calories per 12 oz. can. It also sells powdered drink mixes that contain 20mg of CBD per serving.
CENTR was picked up by wine and spirits distributor Southern Glazer’s last year and, as of March 1, is available in 3,050 retail locations nationwide. According to its website, its products are currently available for purchase in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Virginia, Wisconsin and Wyoming.
The announcement comes after CENTR declared the completion of the third and final tranche of its previous non-brokered private placement financing, raising a total of approximately C$5.9 million.
What are the terms of the raise?
CENTR issued units valued at aggregate C$4.5 million, at price of $0.65 per share. Each warrant is exercisable to acquire one common share of the company (a “Warrant Share”) for the price of $1.50 per Warrant Share for a period of three years following the date of issue, subject to a redemption timing adjustment in certain events.
CENTR paid a finder’s fee in connection with the sale of certain of the units