Prime Drink Group closes first tranche of private placement at $1.35M

Prime Drink Group Corp. (CSE: PRME) completed the first closing of a non-brokered private placement, raising gross proceeds of $1,349,200, according to a press release from the Montreal-based company.

The company issued 26,984,000 common shares and 26,984,000 warrants. Each warrant allows the holder to purchase one common share at $0.10 for a period of two years from the issuance date.

The securities are subject to a hold period of four months and one day from issuance under Canadian securities laws. The offering remains subject to final approval from the Canadian Securities Exchange and other applicable regulatory bodies.

Prime Drink Group said it intends to allocate $1.0 million of the net proceeds toward finalizing an agreed settlement with creditors and the release of security, with the remaining balance directed to general working capital.

The company will pay a cash finders' fee of 6% of proceeds received from subscribers introduced by arm's-length finders.

CFO Jean Gosselin said: "This strong vote of confidence from key shareholders, including Mr. Olivier Primeau, reinforces our belief in Prime's strategic direction and provides further support for the Company's promising outlook and long-term growth prospects."

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