Herbal Dispatch Announces Closing of Oversubscribed Equity Private Placement

Core Viewpoint - Herbal Dispatch Inc. has successfully closed an oversubscribed non-brokered private placement, raising CAD$2,078,211 through the sale of 41,564,220 units at CAD$0.05 per unit, indicating strong investor confidence in the company's growth potential [1][4]. Group 1: Private Placement Details - The private placement consisted of units that included one common share and one-half common share purchase warrant, with each full warrant exercisable at CAD$0.08 for 24 months [2]. - The company incurred finder's fees totaling CAD$103,495 in cash and issued 599,900 warrants to qualified finders who introduced investors [5]. - Insiders participated in the private placement, subscribing for 6,814,420 units, which represents approximately 16.39% of the total units sold [6][7]. Group 2: Use of Proceeds - The net proceeds from the private placement will be allocated to enhance operational resilience, including investments in premium inventory for export sales, strengthening supplier relationships, and expanding domestic market presence [3]. - These strategic allocations aim to fortify the balance sheet and position the company for scalable profitability and sustained value creation for shareholders [3]. Group 3: Regulatory and Approval Aspects - The private placement is classified as a related party transaction under Multilateral Instrument 61-101, requiring exemptions from formal valuation and minority shareholder approval due to the fair market value being below 25% of the company's market capitalization [8][9]. - The Board of Directors unanimously approved the private placement, with no contrary views expressed by any director [10].