Proactive Investors - Run By Investors For Investors

Tidal Royalty completes US$5M private placement and financing fee agreement with Lighthouse

The cannabis industry financier says it’s entitled to 1% of the net sales of Lighthouse beverage lines
 A marijuana leaf
Lighthouse has the pieces in place to become a market leader in cannabis beverages, according to Tidal Royalty

Tidal Royalty Corp (CSE:RLTY.U) said it has closed its US$5 million private placement with Lighthouse Strategies LLC and a concurrent financing fee agreement.

The Toronto-based cannabis industry financier said in a press release that it’s entitled to 1% of the net sales of Lighthouse beverage lines, including Cannabiniers, Two Roots Brewing Co and Creative Waters Beverage Co.

READ: Tidal Royalty makes strategic investment in Lighthouse Strategies, maker of the first non-alcoholic cannabis-infused craft beer

Lighthouse operates 11 companies serving both traditional and regulated markets, including vertically integrated cannabis assets licensed in California and Nevada. The company is known for developing the world's first non-alcoholic, cannabis-infused craft beer and liquor brand, according to Tidal Royalty.

"Our enthusiasm for infused beverages has only grown since we initially announced this transaction," Tidal Royalty CEO Paul Rosen said in a statement. “We believe that Lighthouse has all the pieces in place to be a market leader in this space."

Under the deal, financing fees will accrue until Dec. 1, when Tidal Royalty may choose to receive such fees in cash or membership units of Lighthouse. After that, financing fees are payable quarterly in cash.

The term of the financing fee agreement is four to six years, depending on the achievement of certain milestones. Included are acceleration provisions in the event of a substantial asset divestiture, change of control or initial public offering.

Shares of Tidal fetched US$0.13 in Wednesday’s Canadian trading.

Contact Dennis Fitzgerald at [email protected]

Join Proactive’s Crypto, Blockchain and Cannabis Telegram group here
View full RLTY.U profile View Profile

Tidal Royalty Corp. Timeline

Related Articles

Cannabis leaf
November 19 2018
With the legalisation of recreational cannabis in Canada in October, and the US expected to follow suit, the company has its sights set on building up the very best in the industry
Empower clinic locations
March 26 2019
Empower Clinics is one of the largest operators of medical-cannabis-focused healthcare in the US
November 13 2018
Ascent, viaThirty Eight Hemp Corp, will exploit the hemp market via its strategic relationship with AgTech Scientific
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use