SCOTTSDALE, Ariz.–(BUSINESS WIRE)–The Alkaline Water Company today announces, that further to its News Release of July 5, 2021, it has closed a non-brokered private placement financing of 4,757,381 subscription receipts at a price of US$1.05 per Subscription Receipt for total gross proceeds of US $4,995,250.05.
“Alkaline88 continues to be one of the most prominent growing premium functional waters in the category. Having just reported another record year, the Company could not be better positioned for aggressive growth throughout fiscal 2022 in multiple different sales channels,” said the Alkaline Water Company’s Chairman, Aaron Keay. “Leading this financing alongside Shaquille is not only an honor but an aligned testament to both our beliefs that Alkaline88 is becoming a household name for premium waters and a go-to brand across America.”
“I only invest in companies I believe in and products that I use. Alkaline88 checks both boxes,” said Shaquille. “We’ve got big plans for this company and I’m looking forward to being a key player in its continued success.”
Mr. Keay’s and Shaquille O’Neal’s equal investments of US$1,050,000 in the Financing accounted for over 40% of the gross proceeds of the entire financing. The Company expects to use the proceeds as general working capital and to fund the expansion of production capacity.
“We really could not have found a better partner for Alkaline88® than Shaquille,” said Ricky Wright, President and CEO of The Alkaline Water Company. “I can’t overstate how business-minded he is about the success of this company, and I believe that this investment emphasizes that point even more. We’re absolutely thrilled to have him as the face of our company, but even more so to count him as a business partner.”
Each Subscription Receipt will entitle the holder to acquire, for no additional consideration, one unit (each, a “Unit”) consisting of one common share (each, a “Share”) of the Company and one transferable share purchase warrant (each, a “Warrant”) upon shareholder approval for the Financing (the “Release Condition”). Each Warrant will entitle the holder thereof to acquire one Share (each, a “Warrant Share”) for a period of three years from the date of issuance thereof at a price of US$1.25 per Warrant Share.
The Subscription Receipts will be converted into Units on the date the Release Condition is satisfied. The proceeds of the Financing will be held in trust and will not be released to the Company until the Release Condition has been satisfied. If the Release Condition is not satisfied on or before September 30, 2021, the proceeds of the Financing will be returned to subscribers without interest or penalty, and the Subscription Receipts will be cancelled.
The proceeds of the Financing are expected to be used to fund the Company’s general working capital and expansion of production capacity.
No finder’s fees were paid in connection with the Financing.
Klutch Financial Corp., a private company wholly owned by Aaron Keay, a director of the Company, was issued 1,000,000 Subscription Receipts under the Financing and Frank Lazaran, a director of the Company, was issued 50,000 Subscription Receipts under the Financing, each of which constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The issuance to the insiders is exempt from the valuation requirement of MI 61-101 and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25% of the Company’s market capitalization.
About The Alkaline Water Company:
Founded in 2012, The Alkaline Water Company (NASDAQ and CSE: WTER) is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88®, is a leading premier alkaline water brand available in bulk and single-serve sizes along with eco-friendly aluminum packaging options. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH balanced alkaline drinking water with trace minerals and electrolytes and boasts our trademarked label ‘Clean Beverage.’ Quickly being recognized as a growing lifestyle brand, Alkaline88® launched A88 Infused™ in 2019 to meet consumer demand for flavor-infused products. A88 Infused™ flavored water is available in six unique all-natural flavors, with new flavors coming soon. Additionally, in 2020, the Company launched A88 Infused Beverage Division Inc., which includes the Company’s CBD water and flavor-infused water. For the Company’s topical and ingestible offerings, A88 Infused Products Inc. includes the Company’s lab-tested hemp-extract salves, balms, lotions, essential oils, bath salts, powder packs, oil tinctures, capsules, and gummies.
To purchase Alkaline88® and A88 Flavor Infused products online, visit us at www.alkaline88.com.
To learn more about The Alkaline Water Company, please visit www.thealkalinewaterco.com or connect with us on Facebook, Twitter, Instagram, or LinkedIn.
