Lumiera Health Announces Proposed $600K Private Placement And Debt Settlement Agreement

Lumiera Health Inc. NHP a company specializing in the development and commercialization of natural health products, intends to sell, on a private placement basis, up to 60 million units at a price of $0.01 per unit, for gross proceeds to the company of up to $600,000. The issue price of the units is equal to the closing price of the Lumiera shares on the TSX Venture Exchange on November 17, 2022.

The proceeds from the private placement will be used to support operations, as well as to leverage key opportunities that will accelerate growth.

Each unit will consist of one common share in the capital of the company and one common share purchase warrant, with each warrant entitling the holder to acquire one additional common share, at an exercise price of $0.05 per share, for a period of three years from the date of issuance.

The company intends to include an acceleration clause in the certificates representing the warrants whereby the company may accelerate the expiry of these warrants at any time prior to the expiry date in the event the daily volume weighted average trading price of the common shares of the company on the TSX Venture Exchange exceeds $0.08 for at least 10 consecutive trading days by providing written notice to the warrant holders. The warrants will, unless exercised, expire on the 30th day after the company provides the acceleration notice.

At the closing date, the company may pay to finders a commission equal to 7.5% of the gross proceeds from the sale of offered securities to the identified parties, and it may issue warrants of the company entitling to purchase a number of units equal to 7.5% of the aggregate number of offered securities sold to the identified parties, at the same issue price as the units. The final terms of the finders warrants will be confirmed prior to closing.

The offering is expected to close on or before December 16, 2022. The closing of the private placement is subject to certain standard conditions including, but not limited to, the receipt of all necessary approvals including the acceptance of the TSX Venture Exchange.

Debt settlement agreement

Lumiera has entered into a debt settlement agreement with lenders. Pursuant to the debt settlement agreement the company anticipates that it will settle an aggregate of approximately CA$1.1 million of debt burden upon closing of the debt settlement through:

• $781,781 in cash;

• The issuing of 15 million units;

• A royalty equal to 5% of Lumiera's gross revenues until a total of $150,000 has been paid.

The company is actively working toward a solution to meet its obligation before the December 1^st, 2022, deadline. There is no guaranty the company will be in a position to do so.

The closing of the debt settlement agreement is subject to certain standard conditions including, but not limited to, the receipt of all necessary approvals including the acceptance of the TSX Venture Exchange.

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