Vancouver, B.C. – Luff Enterprises Ltd., (CSE: LUFF) (“LUFF” or the “Company”) is pleased to announce it has completed its previously announced non-brokered private placement issuing 27,159,203 shares of the Company at a price of $0.016 per share for gross proceeds of $434,547.24 (the “Private Placement”). All securities issued under the Private Placement will be subject to a four month hold period expiring January 22, 2021, in accordance with applicable securities laws. The offering is subject to the final acceptance of the Canadian Securities Exchange.
Proceeds from the Private Placement will be used for working capital and general corporate purposes. In connection with the offering the company paid cash finder’s fees of $1,340.
Participation in the Private Placement included the Directors, CEO, CFO, COO and other key employees of the Company, showing strong support for the Company and its direction. Accordingly, this is considered to be a “related party transaction” for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transaction (“MI 61-101”). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 of MI 61-101 in reliance on section 5.5(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves the interested parties, is not more than the 25% of the Company’s market capitalization. Additionally, the Company is exempt from minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on section 5.7(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves the interested parties, is not more than 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days before closing the Private Placement as matters relating to the related parties’ participation in the Private Placement were not settled until within such 21-day period and the Company wished to close the Private Placement on an expedited basis for sound business reasons.
Philip Campbell, CEO of Luff Enterprises Ltd., commented “We are very happy with the level of support from our investors and are excited about the path of the Company and look forward to providing updates in the future.”
About Luff Enterprises Ltd.
The Company’s operations currently include facilities only in the United States. The Company holds licenses in Oregon and Nevada which allow the company to manufacture and distribute hemp-based cannabinoid wellness products.
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For further information:
Philip Campbell, CEO and Director
Email: [email protected]