Stevia First Corp. Obtains Pivotal Financing From Institutional Investors for $1.47 Million in Net Proceeds
Oct 01, 2014
Additional Working Capital to Propel Rapid Commercialization Towards Near Term Positive Cash Flow
SACRAMENTO, CA--Stevia First Corp. (OTCQB: STVF) ("Stevia First" or the "Company"), an agricultural biotechnology company based in California's Central Valley growing region and focused on the industrial scale production of stevia, the all-natural zero-calorie sweetener that is rapidly transforming the food and beverage industry, is pleased to advise that it made a conversion offer (the "Early Exercise Offer") on September 9, 2014 to each holder of the Company's outstanding Series C Warrants (originally issued on June 28, 2013) which was accepted by all participants resulting in net proceeds to the Company of approximately $1,470,000. The Company expects that it will use such proceeds for research and development related to stevia production and for working capital and general corporate purposes, including general development efforts.
As of September 9, 2013, there were outstanding Series C Warrants to purchase an aggregate of 3,676,472 shares of the Company's common stock, representing approximately 5.5% of the currently issued and outstanding shares of the Company's common stock. The offer, subject to certain conditions, (a) reduces the exercise price of the Series C Warrants, and (b) issues a new warrant to such holder to purchase additional shares of the Company's common stock.
"This additional financing from leading hedge fund investors should propel our recently announced commercialization plans towards near term positive cash flow much faster than we had originally anticipated," states Stevia First Corp. CEO, Robert Brooke. "This is excellent news for our shareholders and commercial partners alike," Mr. Brooke adds.
The foregoing is only a brief description of the Early Exercise Offer and the New Warrants, does not purport to be a complete description of the rights and obligations of the parties thereunder and is qualified in its entirety by reference to the full text of the Series C Warrant, the Offer Letter and the New Warrant filed as Exhibits to the Current Report on Form 8-K.
The issuance and sale of the New Warrants and the shares of the Company's common stock issuable upon exercise thereof (the "Securities") has not been registered under the Securities Act. The Securities have been and will be sold in reliance upon exemptions from registration under and afforded by Section 4(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act, based on the following facts: each of the recipients of a New Warrant has represented that it is an accredited investor as defined in Rule 501 promulgated under the Securities Act and that it has acquired or will acquire the Securities for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities laws; the Company used no advertising or general solicitation in connection with the issuance and sale of the Securities; and the Securities have been and will be issued as restricted securities. The Securities may not be offered or sold in the United States absent registration under or exemption from the Securities Act and any applicable state securities laws. The Current Report on Form 8-K is not an offer to sell or the solicitation of an offer to buy the Securities.
About Stevia First Corp. (OTCQB: STVF)
Stevia First Corp. is an agricultural biotechnology company that has developed expertise for the production of stevia using fermentation and for improvement of traditional stevia farming and processing methods. The Company is also applying breakthrough technologies in software and the life sciences to develop product applications far beyond stevia and the food and beverage industry. For more information visit: www.steviafirst.com and connect with the Company on Twitter, LinkedIn, Facebook and Google+.
About the Stevia Industry
The market for all-natural, zero-calorie stevia sweeteners is expanding rapidly. The World Health Organization (WHO) estimates stevia intake could eventually replace 20-30% of all dietary sweeteners. The total global sweetener market was estimated at $58.3 billion in 2010. For more information visit: www.steviafirst.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended that involve risks, uncertainties and assumptions, such as statements regarding the Company's planned use of the proceeds it has received as a result of the Early Exercise Offer and the extent and timing of any potential future exercise of the New Warrants. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited to, the Company's research and development activities relating to its product candidates, the Company's ability to obtain required regulatory approvals to commercialize any of its product candidates, competitive factors in the Company's industry and market and other general economic conditions. The forward-looking statements made herein are based on the Company's current expectations, assumptions and projections, which could prove to be incorrect. The forward-looking statements made herein speak only as of the date of this Current Report on Form 8-K and the Company undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law. The Company's Annual Report Form 10-K filed with the Securities and Exchange Commission on June 30, 2014 contains additional risk factors that may cause actual results to differ materially from the forward-looking statements contained in this Current Report on Form 8-K, and you should carefully consider the risks and uncertainties described in that Annual Report.
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