Wellness Lifestyles Inc. Closes Oversubscribed $1,278,700 Financing with Gravitas Securities as Exclusive Financial Advisors
Vancouver, B.C. – Wellness Lifestyles Inc. (TSX.V: WELL) (the “Company” or “WELL”), formerly Movarie Capital Ltd. (TSX.V: MOV), is pleased to announce that it has completed an over-subscribed private placement of 8,524,666 units (each, a “Unit”) to raise total gross proceeds of $1,278,700.10 (the “Private Placement”).
The Company retained Gravitas Securities Inc. (“Gravitas”) as its exclusive financial advisor for the Private Placement.
The Company which owns the businesses of CYI and Shakti Yoga Apparel LLC intends to carry on both businesses and to conduct additional non-yoga related acquisitions in the health and wellness space with a view to developing a synergistic portfolio of brands, products, and businesses that drive maximum shareholder value. The directors of the Company have extensive and highly successful track records on merger and acquisition transactions.
“We’re very pleased to complete a successful oversubscribed offering” said Alex Read, CEO of the Company. “Gravitas played an instrumental role in the success of the transaction as exclusive advisor”
Each Unit subscribed for pursuant to the Private Placement is comprised of one common share of WELL (a “WELL Share”) and one-half of one common share purchase warrant (each whole warrant, a “PP Warrant”), with each PP Warrant being exercisable into one additional WELL Share at an exercise price of $0.25 until June 13, 2019. In the event that the WELL Shares have a closing price on the TSX Venture Exchange (“TSXV”) (or such other exchange on which the WELL Shares may be traded at such time) of greater than $0.50 per WELL Share for a period of 30 consecutive trading days at any time after four months and one day from the closing of the Private Placement, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and, in such case, the PP Warrants will expire on the 30th day after the date on which such notice is given to the holder by the Company. In connection with the private placement, finders were paid aggregate cash commissions of $83,191.50 and issued 542,989 warrants to purchase WELL Shares (the “Finder’s Warrants”). Each Finder’s Warrant is exercisable into one additional WELL Share at an exercise price of $0.15 until June 13, 2019. The securities issued pursuant to the Private Placement are subject to a hold period under applicable Canadian securities laws expiring October 14, 2017.
The funds raised pursuant to the Private Placement and the bridge financing which closed on May 15, 2017 are expected to be used by the Company to fund the business of the Company and CYI following completion of the Transaction, to identify complementary M&A opportunities, repay certain residual debts of the Company and CYI that are to be assumed by the amalgamated company pursuant to the Agreement, and for general working capital expenses.
About Gravitas Securities Inc.
Gravitas is known for sophisticated sector expertise, tactical individuals with a commitment to excellence, global integration and innovation, and as a leading independent wealth management and capital markets firm. Gravitas provides a wide range of investment mandates and services for retail and corporate clients globally from offices in Toronto, Vancouver, and Calgary, and is represented in the United States through its FINRA representative, Gravitas Capital International, in New York and San Francisco.
WELLNESS LIFESTYLES INC.
Per: “Alex Read”__________
Chief Executive Officer
For further information:
Wellness Lifestyles Inc.
Suite 300 – 322 Water Street
Vancouver, B.C. V6B 1B6
Alex Read, Chief Executive Officer
Phone: (604) 628-7266