MONTREAL, March 26, 2025 (GLOBE NEWSWIRE) -- Prime Drink Group Corp. (CSE: PRME) (“Prime” or the “Company”) announces that it has closed a non-brokered private placement (the “Offering”) of units of the Company (each, a “Unit”) for gross proceeds of $1,810,276.
The Offering consisted of the sale of 1,811 Units at a price of $999.60 per Unit resulting in the issuance of 10,648,680 common shares of the Company (the “Common Shares”) and 7,244,000 transferable share purchase warrants (the “Warrants”). Each Warrant entitles the holder to purchase one Common Share at a price of $0.25 per Common Share for a period of two (2) years from the closing date of the Offering. Each Unit was comprised of 5,880 Common Shares and 4,000 Warrants.
“This financing reflects strong investor confidence in our long-term growth strategy as we continue to work on growing our water, beverage, and influencer media activities,” said Alexandre Côté, President and CEO of Prime.
In connection with the Offering, the Company paid cash finders’ fees totaling $64,174 to arm’s length finders, representing 6% of the proceeds received by the Company from subscribers to the Offering introduced to the Company by such finders.
The securities underlying the Units issued pursuant to the Offering are subject to resale restrictions, including a hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws. The Company intends to use the net proceeds of the Offering to develop its business and for general working capital purposes.
Alexandre Côté, Garry Turpin and Germain Turpin, each an officer of the Company, purchased an aggregate of 641 Units of the Offering for gross proceeds of $640,744. The participation by such insiders in the Offering constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such transaction is exempt from the minority approval and formal valuation requirements pursuant to the exemptions contained in Sections 5.5(a) and 5.7(1) of MI 61-101, as neither the fair market value of the Units nor the consideration for the Units paid by such interested parties, exceeded 25% of the Company’s market capitalization.
Board Resignation
Mr. Jean-Denis Côté has resigned as a member of the Board of Directors of the Company (the “Board”) to pursue other opportunities. The Board thanks Mr. Côté for his contribution and wishes him all the best in his future endeavours.