Rua approves debt facility to accelerate sales.

The Board of Rua Bioscience have approved a debt facility offered to wholesale lenders for the purchase of stock to accelerate sales growth. As Rua Bioscience expands globally, the requirements for working capital has increased. This facility provides for up to $2mill additional working capital for the purchase of inventory for significant sales growth.

As part of this facility, the Board has resolved to issue up to 5% of the shares on issue as Warrants to subscribe for fully paid ordinary shares of Rua.

Key terms of the Warrant issue are as follows:

Number of Warrants
Up to a maximum of 11,182,401 warrants for a maximum $2mill debt facility.

Exercise Price
$0.015 per fully paid ordinary share to be issued on exercise of each Warrant.

Vesting Date
12 months following Commencement Date

Maturity Date
3 years following Commencement Date

Exercise Period Warrants are exercisable at any time following Vesting Date and prior to Maturity Date.

Other
Warrants are not to be quoted or tradeable/transferrable.

The Warrants will be issued to wholesale lenders identified by the Board, with the issue and allotment to occur as funds are made available to Rua.

Strategic alignment with growth objectives

This debt facility is a pivotal part of Rua growth strategy, aimed at accelerating its market penetration and significantly scaling revenues. By securing flexible working capital, Rua is reinforcing its ability to meet the rising demand for its medicinal cannabis products across domestic and international markets.

ENDS  
 
The person who authorised this announcement:

Paul Naske
Chief Executive Officer
[email protected]
+64 21 445154

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Announcement PDF