Toronto, Ontario--(Newsfile Corp. - October 9, 2018) - Gunpowder Capital Corp., (CSE: GPC), (CSE: GPC.PR.A), (OTCQB: GNPWF), (FSE: YS6N), ("Gunpowder" or the "Corporation") announced today that the Corporation had acquired Six Hundred and Fifty-Eight Thousand, One Hundred and Eighty-Two ("658,182") Units of Harbour Star Capital Inc., dba EastWest Biosciences, ("Harbour Star"). As At the date of this press release, and due to the completion of this announced transaction, Gunpowder in total now owns Seven Hundred and Seventy-Four Thousand, Eight Hundred and Forty-Nine ("774,849") Common Shares of Harbour Star.
The Units were issued to Gunpowder at a price of Twenty-Seven and a Half Cents ("$0.275") CDN per Unit. Each Unit that Gunpowder acquired consists of one Common Share of Harbour Star and one-half of one Common Share Purchase Warrant of Harbour Star. Each whole Warrant shall entitle Gunpowder the ability to acquire one additional Common Share at a price of Fifty Cents ("$0.50") CDN per Common Share for a period of 12 months from the date of issuance, subject to an acceleration clause whereby if, following the Closing Date, the 10-day volume weight average trading price of the Common Shares of the Corporation on the principal market on which such shares trade is equal to or exceeds Seventy-Five Cents ("$0.75") CDN. On October 4th, 2018 Harbour Star announced, via press release, that it had closed a private placement offering of which the units issued to Gunpowder were part of that offering.
The Corporation acquired the Units by retiring the remaining principle amount of One Hundred and Eighty-One Thousand Dollars ("$181,000.00") CDN that EastWest Biosciences owed Gunpowder via a secured promissory note. The note was previously secured by a 2nd Mortgage charge in favor of Gunpowder on a building owned by EastWest Biosciences. Gunpowder has removed the 2nd Mortgage on the aforementioned property.
About EastWest BioScience Group
EastWest Bioscience is a seed-to-sale organization that offers world class manufacturing and premium hemp-based consumer goods. Since it was founded in 2016, EastWest continues to grow as a high-quality producer, manufacturer and distributor of multiple lines of premium hemp products. EastWest is strategically positioned in mainstream consumer markets with wholistic natural products and has developed distribution channels into mainstream stores and markets in Canada. The Company has a Health Canada licensed, GMP (Good Manufacturing Practices) certified manufacturing facility and produces premium brands offering natural products for a preventive care lifestyle. EastWest consumer product lines are divided into four distinct brands: 1) Natural Advancement — natural biopharmaceutical health supplements; 2) Earth's Menu — all-natural hemp superfoods; 3) Natural Pet Science — pet food and pet supplements; and 4) Chanvre Hemp — all-natural health and beauty products. The organization will continue to focus on ongoing development of innovative, hemp-based consumer products through advanced science with clean, natural ingredients to complement its current product offerings. For further information, please visit .
About Gunpowder Capital Corp.
Gunpowder Capital Corp., is a merchant bank and advisory services firm based in Toronto, Ontario, Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder partners with these businesses to support their growth initiatives with its proven methodology of appropriate financing and structured exits. Gunpowder offers debt financing, including mezzanine and bridge loans, equity financing and advisory services. Gunpowder is also building a portfolio of companies in which it takes a long term position and view. For more information please visit .
For further information please contact:
Mr. Frank Kordy
CEO & Director
Gunpowder Capital Corp.
T: (647) 466-4037
E:
Mr. Paul Haber
CFO
Gunpowder Capital Corp.
T: (416) 363-3833
E:
Forward-Looking Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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