The BC Bud Co Announces Upsized Financing and Closing of 2nd Tranche

Rhea-AI Summary

The BC Bud (BCBC) has announced an increase in its non-brokered private placement from $1 million to $1.5 million due to high demand. The company has completed the second tranche of the placement, raising $511,275 through the sale of 6,816,998 units at $0.075 per unit. Each unit includes one common share and one purchase warrant, allowing holders to acquire an additional share at $0.15 within 24 months.

The company previously closed the first tranche on January 17, 2025, raising $631,300. Total proceeds to date amount to $1.142 million through 15,234,330 units. The proceeds will support business development and working capital. Additionally, BCBC has granted 8 million stock options to directors, officers, and consultants, exercisable at $0.12 per share for two years.

Positive

• Increased private placement size by 50% to $1.5M due to high demand
• Successfully raised $1.142M to date through unit sales
• No finder's fees paid, maximizing capital efficiency

Negative

• Potential dilution from issuance of up to 20M new units
• Additional dilution risk from 8M stock options granted
• Warrants could lead to further dilution if exercised

Vancouver, British Columbia--(Newsfile Corp. - January 24, 2025) - The BC Bud Corporation (CSE: BCBC) (OTC Pink: BCBCF) (FSE: W04) ("The BC Bud Co" or the "Company"), is pleased to announce that, further to its news release dated January 9, 2025, due to significant demand, it has increased the size of its previously announced non-brokered private placement (the "Placement") to up to $1.5 million (previously $1 million). Under the upsized Placement, the Company will issue up to 20 million units (each a "Unit") at a price of $0.075 per Unit for aggregate gross proceeds of up to $1.5 million.

Additionally, the Company announces that it has closed the second tranche of the Placement raising gross proceeds of $511,275 through the sale of 6,816,998 Units. Each Unit is comprised of one common share and one share purchase warrant. Each warrant will entitle the holder to acquire an additional common share at a price of $0.15 per share for a period of 24 months. The Company previously closed the first tranche of the Placement on January 17, 2025 for aggregate gross proceeds of $631,300. To date, the Company has raised aggregate gross proceeds of $1.142 million through the sale of an aggregate of 15,234,330 Units. Please refer to the Company's news releases dated January 17, 2025 and January 9, 2025 for additional details regarding the Placement.

No finder's fees were paid in connection with the first or second tranche of the Placement. All securities issued in the second tranche are subject to a statutory hold period expiring on May 25, 2025, in accordance with applicable securities legislation.

Net proceeds of the Placement will be utilized for business development and general working capital purposes.

Grant of Options

The Company also announces that it has issued an aggregate of 8 million incentive stock options ("Options") to certain directors, officers and consultants of the Company, pursuant to the Company's omnibus share incentive plan. Each Option is exercisable by the holder to purchase one common share of the Company at an exercise price of $0.12 for a period of two years.

About The BC Bud Co.

The B.C. Bud Co. is a house of brands created by industry professionals who are passionate about the user experience.

On behalf of the board of directors of The BC Bud Co.

Brayden Sutton
Chief Executive Officer and Director

Investor Relations
Phone: 1-(778)-656-0377
Email: info@thebcbc.com
Web: www.thebcbc.com

Disclaimer
Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-Looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the anticipated use of the net proceeds of the Placement. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will use the net proceeds of the Placement as currently anticipated and that the Company's business plans will remain unchanged. These forward‐looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that the Company will not use the net proceeds of the Placement as currently anticipated, unanticipated costs and changes in the Company's business plans, regulatory changes, or other changes impacting the use of the net proceeds of the Placement.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

Neither the Canadian Securities Exchange (the "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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238292

FAQ

How much did BCBCF raise in the second tranche of its private placement?

BCBCF raised $511,275 in the second tranche through the sale of 6,816,998 units at $0.075 per unit.

What are the terms of BCBCF's warrant offering in the January 2025 placement?

Each warrant allows holders to purchase one additional common share at $0.15 for a period of 24 months.

How many stock options did BCBCF grant and at what price?

BCBCF granted 8 million stock options exercisable at $0.12 per share for a two-year period.

What is the total amount raised by BCBCF in both tranches of the 2025 private placement?

BCBCF has raised a total of $1.142 million through both tranches of the private placement.

When do the securities from BCBCF's second tranche become freely tradeable?

The securities from the second tranche have a statutory hold period expiring on May 25, 2025.