BC Bud Corporation of Vancouver (CSE BCBC) has raised its non-brokered, private placement from $1 to $1.5 millions due to a strong demand by investors.
A Thursday press release stated that the cannabis company, which was formerly known as Entheos Capital Corp. closed its second tranche, raising $511 275 from the sale 6,8 million units, each at $0.05. It follows the first $631.300 tranche to bring total proceeds up to $1.142 Million.
Each unit contains one common share as well as a warrant that can be exercised at $0.15 per month for 24 months. A finder’s fee was not paid. The securities have a 4-month holding period that ends on May 25, 2019.
The proceeds will be used for working capital and business development, according to the company.
BC Bud has also given 8 million options exercisable for 2 years at $0.12 per share to its directors, officers, and consultants.
Financial statements released recently show that quarterly revenues dropped from $262 213 to just $36,499, a drop of almost 40%. A $397.745 loss was reported by the company, which is higher than last year’s $192.662. The reason given for this increase in losses, increased market return and competition, was that there were more people competing. The company had a working capital of $25,357 as at August 31.