Better Choice Company Inc (BTTR)

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Sport Endurance Announces Closing of $2.8 Million Financing to Explore Strategic Alternatives in the CBD, Hemp and Legal Cannabis Industries

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BROOKLYN, N.Y., Dec. 12, 2018 (GLOBE NEWSWIRE) -- Sport Endurance, Inc. (OTCQB: SENZ) (the “Company”) announced today the closing of approximately $2.8 million in a private placement of its units, each unit consisting of one share of common stock and one-half of a warrant, the proceeds of which the Company plans to use to explore strategic alternatives in the cannabidiol (“CBD”), hemp, and legal cannabis industries.

David Lelong, Chief Executive Officer of Sport Endurance, stated, “The regulatory landscape continues to evolve for CBD products, allowing us to leverage our core competency as an online marketer to potentially offer these products through e-commerce. With the Farm Bill moving forward, we believe now is the opportune time to explore strategic opportunities in the CBD and hemp segments of the market. We are currently in preliminary discussions to enter into a new business model and acquire a business, although we have not yet entered into any agreements and may not be able to complete any proposed acquisition.”

The Hemp Farming Act of 2018, introduced by Senate Majority Leader Mitch McConnell in March 2018, proposed the removal of hemp from being classified as a Schedule I controlled substance, making it a normal agricultural commodity on the national level. On December 10, 2018, the U.S. House and Senate Agriculture Committees released the text of the bipartisan, bicameral Farm Bill conference report that would progress the bill closer to passage. The Farm Bill would federally legalize CBD extraction from hemp and permit big box retailers to sell CBD products. According to New Frontier, it is estimated that CBD sales will reach $1.2 billion by 2020 as compared to national sales of $367 million thus far in 2018.

The units were offered to accredited investors and non-U.S. persons at a fixed price of $0.075 per unit. The warrants are exercisable at $0.15-per share over a two-year term. The offering and sale of securities described herein has not been registered under the Securities Act of 1933 or any state securities laws, and these securities may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the shares of common stock and common stock issuable upon the exercise of the warrants.