BEACN Announces Closing of Second and Final Tranche of Non-Brokered Private Placement

Content Creator market to be served by BEACN's accelerated sales program and other key initiatives.

VICTORIA, BC / ACCESSWIRE / October 3, 2023 / BEACN Wizardry & Magic Inc. (TSX-V:BECN) ("BEACN" or the "Company") is pleased to announce the closing of the second and final tranche of its non-brokered private placement (the "Offering") that was first announced on July 4, 2023. Gross proceeds for the two tranches total $890,000 from the sale of 4,450,000 units of the Company (the "Units) at a price of $0.20 per Unit. Each Unit is comprised of one common share (a "Share") and one non-transferable common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share at a price $0.45 for a period of three years expiring on July 25, 2026 for the first tranche and on September 29, 2026 for the second tranche.

The proceeds from the Offering will be used to (i) accelerate the Company's sales program, including the Company's September 28, 2023 announcement of a B2B agreement with London Drugs (ii) support the development and inventory purchases of new products, (iii) improve on shipping and logistics in new strategic markets and (iv) for general working capital.

The Company also granted a total of 950,000 options to employees and non-executive directors on September 23, 2023. The options are exercisable at $0.20 per share for a five-year term, including vesting provisions for two employees with vesting to be complete by April 7, 2024 and April 24, 2026.

Foto: Accesswire

Initiatives from proceeds will benefit sales of BEACN's consumer electronic products including BEACN Mix and BEACN Mic - photo credit: BEACN 2023

At the option of the investors, all of the Shares to be issued from this Offering are expected to be designated Eligible Business Corporation Shares (an "EBC Share") and therefore the investors will be eligible for a 30% tax credit and there will be restrictions on the sale of the EBC Shares for a period of 5 years. The Warrants will not be EBC eligible.

Directors and officers of BEACN and shareholders owning more than 10% of the Company's common shares participated in the Offering and were issued an aggregate of 2,000,000 Units. Such participation in the Offering constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of 61-101 as neither the fair market value of the securities issued to related parties nor the consideration for such securities exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to closing of the Offering as the participation of insiders of the Company in the Offering had not been confirmed at that time.