Sunniva (CSE: SNN) sale closing delayed to August
Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) announced that it has received a non-refundable payment of deposit in the amount of CAD $1,000,000 under the share purchase agreement dated June 11, 2019, pursuant to which Sunniva has agreed to sell Sunniva Medical Inc. to CannaPharmaRx, Inc. The closing of the transaction is now anticipated to occur in August.
As a result of the delay in closing, Sunniva is announcing a non-brokered private placement of up to CAD $5,000,000 for a total of 5,000,000 units. Proceeds of the Offering will be used to provide short term working capital for operations in California, capital costs at the Sunniva California Campus and general corporate purposes. Each Unit consists of a principal amount of unsecured promissory notes and common share purchase warrants. Certain members of Sunniva's senior management team including the CEO, CFO, President and CEO of Sunniva's U.S. Operations will participate in the Offering which is expected to close on or about July 26, 2019.
I consider these developments as proof of commitment of both parties to this sale. First CannaPharmaRx has posted a $1 million, non-refundable deposit and Dr. Anthony Holler and the senior management team are making a proof of commitment to the success of the California campus by putting their money where their mouths are. This simply reinforces my belief in the potential for this project.