Posts in Business & Fundraising
Business Development & Fundraising Team Update December 7, 2018
 
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This is Dooma writing. With apologies, this week’s update will be a bit longer, especially as there was no update last week. We’ve had some recent personnel changes in Province Brands’ Business Development and Fundraising team and, while it was not my intention to get involved in managing the team on a day-to-day basis, this is an area where the company really needs my expertise at the moment. For now, I’ll be handling the updates, though they won’t all be this long. Next week I’ll return to the regular format. 

Most importantly, our Series B fundraise is taking a bit longer than was initially anticipated. This is unfortunate. We’re hoping that with new personnel joining our team and an updated strategy, we can get the round closed no later than mid-March 2019.  

A part of the issue was out of our control. Shortly after we opened the funding round, the market for publicly-traded cannabis companies went into free fall and it has not recovered yet. Further, a large number of US-based cannabis companies have since listed publicly and those have pulled investors’ attention away from Canadian companies, which seem to be perceived as a smaller market (since Canada’s population is around 1/10 that of the USA). As a result, there are currently upwards of 60 deals underwritten by Canadian investment banks that were initiated in the first quarter of 2018 and have yet to close or be fully funded. Ours is one of them. The other part of the issue is internal. Province had not adopted the best strategy to help facilitate the capital raise. We are addressing these issues and are developing a much stronger strategy to close more effectively. 

Going forward, Province Brands will bifurcate our $30 million Series B round and offer two paths to investment. We will continue to work with Paradigm and shortly we will launch a non-brokered private placement that we will manage in a manner similar to how we successfully raised our seed, Series A and A2 funding rounds. Both rounds will have the ability to raise up to $30 million CAD, and our current plan is that when the combination of the two raises brings in $30 million (or not more than $34.5 million, as there is a small oversubscription allowance) we will take the company public on the TSXV as planned. This strategy is innovative and complex, and we would certainly love to have your guidance, suggestions and advice. I think most of you have my phone number, but in case you don’t, it is plus one five one four five five zero five eight six eight. 

This past week primarily was spent on restructuring the Business Development and Fundraising team, cleaning up our tools, and preparing to make some major progress in the weeks ahead. We also made a new hire and will have a fifth full-time member join the team in early January. We just added two part-time contractors to the team and a third is joining soon. We are also scheduling meetings for my upcoming trips to Miami, Montreal and London. Let me know if you live in any of these cities and would like to meet. I’d love to connect with you! Finally, we’ll be preparing a roadshow in January to visit the most promising prospective investors. Let me know if there’s someone you think we should speak to or visit during the roadshow.

We’re going to get this done. We always do. Of course, it won’t be easy – but nothing ever has been for us. That’s OK. We’ve accomplished quite a lot, and I could not be more proud of this team. 

I’ll wrap this update by drawing your attention to some huge things the Business Development and Fundraising Team, along with some of the other teams, have accomplished since we opened the Series B round. There will definitely be more to come. 

1) Province Brands moved into a 123,000 SF building in Grimsby, Ontario, that will be the world's first cannabis brewery. Construction is currently underway. You can seem some images of the facility in these links: Grimsby 1, Grimsby 2, Grimsby 3, Grimsby, 4, Grimsby 5, Grimsby 6, Grimsby 7, Grimsby 8

2) We have announced the launch of our first alcohol beer made from hemp, Cambridge Bay Imperial Pilsner, which is fully legal and can be sold wherever alcohol is sold. First sales are expected early in the second quarter of 2019. Cambridge Bay Imperial Pilsner is a precursor to our forthcoming marijuana products, which won't be legal in Canada until October 2019. The first market where we will roll out the beer is the Yukon. Read the press release.

3) We have forged a partnership with Brock Street Brewing and will be releasing two different beers with them, one an alcohol product brewed from hemp, and one an alcohol-free marijuana product brewed from marijuana. Read the press release.

4) We have closed a partnership with Lost Craft Brewing and will be copacking a marijuana beer for them. Read the press release

5) We have closed a partnership with Bell City Brewing and will be copacking a cannabis beer for them in our facility. Read the press release.

6) We have closed a partnership with Georgian Bay Biomed and will be copacking a cannabis beer for them in our facility. Read the press release.

7) We have closed a deal with Ayre Resorts to distribute our alcohol beer in their resorts and - only when it becomes fully legal to do so - our cannabis beer there as well. This has not been announced. Read press release.

8) Not yet announced, we have closed a major supply agreement with the Canadian Hemp Farmer's Alliance to supply hemp for our alcohol beer at $55 per ton. For reference, the price of a ton of barley is $600 per ton so this is a huge savings. 

8) Not yet announced, we have forged a partnership with The Ublu Inn and the Kuugaq cafe in Cambridge Bay, Nunavut, related to our right to name the beer brand "Cambridge Bay". 

9) We have substantially grown our science team and now have 9 researchers. We have 3 Ph.D. scientists full time and collectively our science team has received 99 patents in the past and been published in 54 articles in peer reviewed journals. 

10) We have test brewed many batches of beer and are gearing up for our first production run of Cambridge Bay Imperial Pilsner. Here are some videos which show our team hard at work making beer (two do not have any sound). Video 1, Video 2, Video 3

11) We have purchased millions of dollars’ worth of equipment, including two 20,000 HL per year capacity brewhouses plus ample fermenters, enabling our company to produce 40,000 HL of beer per year as soon as we complete setup of these systems. Another system enabling us to produce an additional 135,000 HL per year has been designed.

Business Development & Fundraising Team Update November 23, 2018
 
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THIS WEEK’S UPDATE

  • Continued Series B fundraising.

  • Secured two meetings with big LPs.

  • Got great responses for our PR regarding partnership with Lost Craft.

  • Worked on more PR regarding other partnerships we secured.

  • Worked on a unique proposal for a big sports beverage company.

  • Started training our new team member Jessa.

LOOKING FORWARD

  • Meeting with two of the bigger LPs to introduce Province and discuss different opportunities, one Canadian and one in the USA.

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Follow up with investors we met on the road show.

  • Work on the next visit for DD by investors from Cambodia.

  • Continue looking for more team members.

THINGS WE NEED HELP WITH

  • We have completed the road show, and focusing now on getting commitments to close the round. We are still accepting new orders, and would be happy for introductions to new investors.

Business Development & Fundraising Team Update November 16, 2018
 
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THIS WEEK’S UPDATE

  • Continue Series B fundraising.

  • Had a good meeting with one of the funds from Hong Kong that is in DD process.

  • Participated at MJ BizCon in Vegas, Conducted many meetings including meeting a few of our existing investors. We appreciate the trust followed by action to re-invest in Series B.

  • Worked on a PR to announce a copacking deal with an Ontario Beer.

LOOKING FORWARD

  • We have a new team member, Jessa, joining the team as Business Development Coordinator.

  • Meeting with one of the bigger LPs to introduce Province and discuss different opportunities.

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Follow up with investors we met on the road show.

  • Announcing our copacking partnership with Lost Craft

  • Continue looking for more team members.

THINGS WE NEED HELP WITH

  • We have completed the road show and are focusing now on getting commitments to close the round. We are still accepting new orders and would be happy for introductions to new investors.

Business Development & Fundraising Team Update November 9, 2018
 
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THIS WEEK’S UPDATE

  • Continued Series B fundraising.

  • Hosted an institutional investor who was conducting due diligence before a substantial investment. The visit went well, and we are moving forward with the DD. One more visit still required on early December.

  • Started three DD with funds we met at the Hong Kong Cannabis Investor Symposium.

  • Presented at the DC Finance event in Toronto. Good intros to new investors.

  • Worked on a PR to announce a copacking deal with an Ontario brewery.

  • We have a new team member joining next week

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Follow up with investors we met on the road show.

  • Participate in the MJ Bizcon at Las Vegas, and meet with potential investors.

  • Get the PR approved and published.

  • Continue looking for more team members.

THINGS WE NEED HELP WITH

  • We will be in MJ Bizcon at Las Vegas, if you or anyone you know is attending, we would be happy to meet. Wednesday, November 14 – Friday November 16.

Business Development & Fundraising Team Update November 2, 2018
 
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THIS WEEK’S UPDATE

  • Continue Series B fundraising.

  • Participated in the Hong Kong Cannabis Investor Symposium.

  • Met with potential investors in Kuwait.

  • Signed a copacking deal with an Ontario brewery.

  • Prepared for a due diligence visit by a big institutional investor coming this week.

  • Sent an offer to a potential new team member.

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Present at the DC Finance event in Toronto this Tuesday, Nov 6.

  • Host an institutional investor who is conducting due diligence before a substantial investment.

  • Follow up with investors we met on the road show.

  • Continue looking for more team members.

THINGS WE NEED HELP WITH

  • If you have investors to introduce us too, we will be happy to call/meet them to bring them into the Province Team. If needed, we can travel to present to them in person.

Business Development & Fundraising Team Update October 26, 2018
 
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THIS WEEK’S UPDATE

  • Continued Series B fundraising.

  • Conducted calls and meetings in Toronto, Dubai, and Germany.

  • Contacted investors in to set up meetings for the coming weeks.

  • Moving forward with a few companies (LPs, brewries) to set a copacking agreement

  • Met with one of the leading global alcohol brands.

  • Presented in the Private Cannabis Investment Summit in Toronto.

  • Set and arranged a due diligence visit by a big institutional investor for next week.

  • Interviewed a couple of candidates and started preparing an offer to one of them.

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Participate in Arcview Hong Kong.

  • Meet with potential investors in Kuwait.

  • Set meetings with investors while we are on our roadshow.

  • Host an institutional investor who is conducting due diligence before a substantial investment.

  • Follow up with investors we met at the Private Cannabis Investment Summit in Toronto.

  • Continue looking for more team members.

  • Prepare for DC Finance event in Toronto on Nov 6.

THINGS WE NEED HELP WITH

  • If you have investors to introduce us to, we will be happy to call/meet them and add them to the Province Team. If needed, we can travel to present to them in person. Our roadshow schedule is:

    • Tuesday, October 30th – Friday, Nov 2nd – Hong Kong

    • Tuesday, October 30th – Thursday, Nov 1st – Kuwait

Business Development & Fundraising Team Update October 19, 2018
 
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THIS WEEK’S UPDATE

  • Its official, Canada is the first country to legalize cannabis! The countdown to edible legalization has started...

  • Continued Series B fundraising.

  • Conducted calls and meetings in Singapore, Cambodia, and Tokyo.

  • Contacted investors in different parts of Canada, Dubai, and Germany to set up meetings for the coming weeks.

  • Moving forward with a few companies (LPs, breweries) to set a copacking agreement

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Set meetings with investors while we are on our roadshow.

  • Dooma will continue the roadshow and be in Dubai and Germany.

  • Meet with one of the leading global alcohol brands.

  • Present in the Private Cannabis Investment Summit in Toronto.

  • Continue looking for new team members

THINGS WE NEED HELP WITH

  • If you have investors to introduce us to, we will be happy to call/meet them and add them to the Province Team. If needed, we can travel to present to them in person. Our roadshow schedule is:

    • Thursday, October 25th - Dubai

    • Friday, October 26th - Hamburg

    • Thursday, November 1 - Saturday, November 3 - Hong Kong Arcview conference

Business Development & Fundraising Team Update October 12, 2018
 
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THIS WEEK’S UPDATE

  • Over the last week, we have focused most of our efforts on Series B fundraising, rather than business development.

  • Conducted calls and meetings in New York, Montreal, Toronto, and Vancouver.

  • Contacted investors in different parts of Canada, USA, and the world to set up meetings for the coming weeks.

  • Talked with a few IR companies to support us once we are a public company.

  • Interviewed a few candidates to join the team

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Set meetings with investors while we are on our roadshow.

  • Dooma and Elad will continue the roadshow and be in the following cities: Singapore, Phnom Penh (Cambodia), and Tokyo.

  • Chose an IR firm to support Province’s communications once public.

  • Continue looking for new team members

THINGS WE NEED HELP WITH

  • If you have investors to introduce us too, we will be happy to call/meet them and add them to the Province Team. If needed, we can travel to present to them in person. Our roadshow schedule is:

  • Tuesday, October 16 - Singapore

  • Wednesday, October 17 - Phnom Penh, Cambodia

  • Thursday, October 18th – Japan

  • Friday, October 19th - Japan

Business Development & Fundraising Team Update October 5, 2018
 
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THIS WEEK’S UPDATE

  • Over the last week, we have focused most of our efforts on Series B fundraising, rather than business development.

  • Participated in conferences in London and Geneva, with the support of PI Financial, and received a lot of interest in our raise.

  • Met with potential investors in Toronto, including a couple of the bigger LPs.

  • Contacted investors in different parts of Canada, USA, and the world to set up meetings for the coming weeks.

  • Talked with a few IR companies to support us once we are a public company.

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Set meetings with investors while we are on our roadshow.

  • Dooma and Elad will continue the roadshow and be in the following cities: New York, Montreal, Vancouver, and Japan to attend meetings with investors (Full schedule below).

  • Choose an IR firm to support Province’s communications once public.

  • Continue looking for new team members

THINGS WE NEED HELP WITH

  • During the next two weeks, we will be in the following cities. If you know any investors you’d like to introduce us to, we will be happy to call/meet them and add them to the Province Team. If needed, we can travel to present to them in person.

  • Monday, October 8th – New York

  • Tuesday, October 9th – New York

  • Wednesday, October 10th – Montreal

  • Thursday, October 11th – Toronto

  • Friday, October 12th - Vancouver

  • Thursday, October 18th – Japan

  • Friday, October 19th - Japan

Business Development & Fundraising Team Update September 28, 2018
 
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THIS WEEK’S UPDATE

  • This was the first week of Series B. We had a bunch of meetings and are already seeing the interest in the new round.

  • We are happy to share that our syndicate includes: Paradigm, PI, Echelon, and IA.

  • Presented to syndicate partners, a large alcohol company, and LP.

  • Set up a roadshow for the next two weeks

LOOKING FORWARD

  • Most of the team’s time will be dedicated to Series B fundraising.

  • Dooma, Oscar, and Elad will be meeting investors on the roadshow (full schedule below)

  • Chose an IR firm to support Province’s communications once public.

  • Set meetings with investors while we are on our road show.

  • Continue looking for new team members

THINGS WE NEED HELP WITH

  • During the next two weeks, we will be in the following cities. We are happy to meet with you or any new investors you’d like to introduce to us.

  • Monday, October 1st – London

  • Tuesday, October 2nd – London

  • Wednesday, October 3rd – London + Geneva

  • Thursday, October 4th – Toronto + Geneva

  • Friday, October 5th – Toronto

  • Monday, October 8th – New York

  • Tuesday, October 9th – New York

  • Wednesday, October 10th – Montreal

  • Thursday, October 11th – Toronto

  • Friday, October 12th - Vancouver

Business Development & Fundraising Team Update September 21, 2018
 
 Elad Barak representing at the Extraordinary Future conference in Vancouver

Elad Barak representing at the Extraordinary Future conference in Vancouver

 

THIS WEEK’S UPDATE

  • Participated and presented at Arcview Chicago and Extraordinery Future Vancouver

  • Completed the new business plan for the going public round.

  • Completed preparing for the next round and will start next week.

  • Set a few meetings with potential strategic investors.

LOOKING FORWARD

  • Meeting with Paradigm to start the raise.

  • Invite the banks to join the raise and finalize the syndicate.

  • Officially start Series B raise.

  • Follow up with investors we met at the last few events

  • Continue looking for new team members

THINGS WE NEED HELP WITH

  • We are looking for strategic investors to join the round. We are looking for introductions to decision makers in the large LPs

Business Development & Fundraising Team Update September 14, 2018
 
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THIS WEEK’S UPDATE

  • Presented in the Cannabis Private Investment Summit in New York, and started receiving interest in Series B.

  • Completed preparing for the events happening on the week of September 18 - 21.

  • Continue working on a new business plan for the going public round. We have a preliminary version and will have the final version soon.

  • Spoke with two potential IR companies to support Province after going public.

LOOKING FORWARD

  • Continuing our roadshow in Chicago, and Vancouver for the next two weeks

  • Working on the last steps preparing for Series B

  • Last touches to the business plan

  • Complete all documentation for Series B

  • Finalize our syndicate together with Paradigm

THINGS WE NEED HELP WITH

  • Here is our road show for the next week:

    • Vancouver – Wednesday, Sep 19 – Saturday, Sep 22

  • If you have any recommendation of potential investors we should meet, please make an introduction.

Business Development & Fundraising Team Update September 7, 2018
 
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THIS WEEK’S UPDATE

  • Completed Series A2 with $560,000 invested.

  • Completed our new financial model

  • Continued working on a new business plan for the going public round. We have preliminary version and will have the final version soon.

  • Met with the full Paradigm team to present Series B.

  • Spoke with two potential IR companies to support Province after going public.

  • Met with Hybrid Financial, which will support our efforts on the next.

LOOKING FORWARD

  • Starting our roadshow in New York, Chicago, and Vancouver for the next two weeks.

  • Working on the last steps preparing for Series B.

  • Last touches to the business plan

  • Participate in CPIS New York

  • Meeting with potential investors in Series B

THINGS WE NEED HELP WITH

  • Here is our road show for the next couple of weeks:

    • New York – Thursday, Sep 13 – Saturday, Sep 15

    • Chicago – Sunday, Sep 16 – Tuesday, Sep 18

    • Vancouver – Wednesday, Sep 19 – Saturday, Sep 22

  • If you have any recommendation of potential investors we should meet, please make an introduction.

Business Development & Fundraising Team Update August 31, 2018
 
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THIS WEEK’S UPDATE

  • Started discussions about our financial model and valuation.
  • Last touches to the financial model.
  • Continue working on a new business plan for the going public round.
  • Set kick-off meeting with Paradigm to start Series B.
  • Scheduled meetings with two IR firms to support Province after we go public.

LOOKING FORWARD

  • Focusing our effort on getting the business plan done.
  • Determine together with Paradigm our valuation for next round.
  • Aiming to close Series A2 as our last raise before Series B.
  • Conduct kick-off meeting with Paradigm for Series B, and conduct syndicate call.
  • Kick-off meeting with Hybrid Financial, which will support our efforts on the next raise.

THINGS WE NEED HELP WITH

  • As we are getting ready for our Series B, that will be concurrent to going public, it would be great to be introduced to potential investors to join the team.

Business Development & Fundraising Team Update August 24, 2018
 
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THIS WEEK’S UPDATE

  • Met with one more investment banks to discuss joining the syndicate.
  • Made updates to the financial model.
  • Continue working on a new business plan for the going public round.
  • Met with two craft brewers and two LPs interested in co-packing deals.
  • Last week for our two summer interns, thanks for the help and good luck in the last year of university.

LOOKING FORWARD

  • Focusing our effort on getting the business plan ready on time
  • Finalize the financial model and work on valuation for next round.
  • Contact potential investors for the Series A2, and the going public.
  • Start looking for IR firms to assist us once public.
  • Continue working on potential contracts with breweries and co-packers

THINGS WE NEED HELP WITH

  • Still looking for new team members. Looking for a recommendation for someone with public markets experience to join the business development team.

Business Development & Fundraising Team Update August 17, 2018
 
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THIS WEEK’S UPDATE

  • Participated in the Cannabis Capital Conference and met potential investors for both Series A2, and the going public round.
  • Discussed internally our syndicate, and we are getting ready to present it to them in a couple of weeks.
  • Completed first draft of the updated financial model.
  • Working on a new business plan for the going public round.
  • Met with a potential LP that is interested in a white label deal.

LOOKING FORWARD

  • Focusing our effort on getting the business plan ready on time
  • Finalize the financial model.
  • Contact potential investors for the Series A2, and the going public.
  • Continue working on potential contracts with breweries and co-packers

THINGS WE NEED HELP WITH

  • Still looking for new team members. Looking for a recommendation for someone with public markets experience to join the business development team.

Business Development & Fundraising Team Update August 10, 2018
 
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THIS WEEK’S UPDATE

  • Continue raising Series A2
  • Spoke with two more investment banks, and received a positive response from one more bank that wants to join the syndicate.
  • Met with Paradigm for initial review of our financial model and updating it before the going public round.
  • Working on a new business plan and financial model for the going public round.
  • Met with an IR firm to assist with the business plan and IR support post going public.
  • Met with a potential LP that is interested in a white label deal.

LOOKING FORWARD

  • Participating at the Cannabis Capital Conference event here in Toronto.
  • Continuing to raise Series A2.
  • Decide which IBs we would like to include in our syndicate.
  • Work on the business plan, and have a kick-off meeting with an IR firm.
  • Continue updating the financial model for the going public round.
  • Continue working on potential contracts with breweries and co-packers

THINGS WE NEED HELP WITH

  • As we prepare for the going public round, any feedback about our business plan or financial model would is welcomed.

Business Development & Fundraising Team Update August 3, 2018
 
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THIS WEEK’S UPDATE

  • Closed Series A, and opened Series A2 to allow investments to reach the original over-subscription (15%, which is $11,500,000). Series A2 will carry 8% interest rate and 20% discount rate
  • Met with three investment banks that are interested in joining our syndicate.
  • Started preparing a new business plan and financial model for the going public round.
  • Had an initial discussion with an IR firm to assist with the business plan. 
  • Talking with potential breweries to co-pack our Cambridge Bay, and have it in the stores by the end of the year

LOOKING FORWARD

  • Continuing to raise Series A2, have a few meetings\calls set with potential investors looking to join.
  • Decide which IBs we would like to include in our syndicate.
  • Work on the business plan, and have a kick-off meeting with an IR firm.
  • Meet with Paradigm for initial review of our financial model and updating it to the going public round.
  • Continue working on potential contracts with breweries and co-packers

THINGS WE NEED HELP WITH

  • As we prepare for the going public round, any feedback about our business plan or financial model would is welcomed.

Business Development & Fundraising Team Update July 27, 2018
 
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THIS WEEK’S UPDATE

  • Proud to share that we have reached our goal of raising $10m and closed Series A! Thank you all for the support
  • Set a meeting with three investment banks that are interested to join our syndicate.
  • Met with one of Canada’s leading craft breweries
  • Talking with potential breweries to co-pack our Cambridge Bay, and have it in the stores by the end of the year

LOOKING FORWARD

  • Open a Series B round to allow the “over subscription” from Series A without the cap.
  • Meet with investment banks to form our syndicate
  • Continue working on potential contracts with breweries and co-packers
  • After a few hectic months, the business development team will devote time to get prepared and plan the going public transaction.

THINGS WE NEED HELP WITH

  • Still haven't found the right candidate for the Business Development and Fundraising Team, if you know someone that would like to join, we would love to get in touch.

Business Development & Fundraising Team Update July 20, 2018
 
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THIS WEEK’S UPDATE

  • Continued raising Series A, more than $1m commitments in one week
  • Set a meeting with one of the big IBs, to join our syndicate.
  • Structuring our Greece subsidiary, we are working together with legal and our Greece partners to set the terms.
  • Talking with potential breweries to co-pack our Cambridge Bay, and have it in the stores by the end of the year

LOOKING FORWARD

  • Follow up with all the interested investors looking to join team Province.
  • Talking with additional investment banks to join our syndicate
  • Continue working on potential contracts with breweries and co-packer
  • Closing Series A, convertible note, and opening Series B

THINGS WE NEED HELP WITH

  • The Business Development and Fundraising team is expanding, if you know people that would like to join, we would love to get in touch.