The Tinley Beverage Company Inc. has reported that its recent non-brokered private placement has been oversubscribed and is expected to generate nearly $1.5 million.

The private placement is expected to consist of 58,660,000 units at a price per unit of $0.025, with anticipated completion on Jan. 26. Tinley’s intends to use the net proceeds from the private placement to fund its ongoing business initiatives and for general corporate and working capital purposes.

In addition to the private placement, Tinley’s expects to complete the settlement of $533,500 of outstanding debt pursuant to the issuance of an additional 21,340,000 units to certain creditors.

Upon closing of the private placement and debt settlement, Tinley’s expects to issue a total of 80,000,000 units, including 58,660,000 Units under the private placement and 21,340,000 units under the debt settlement. Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of $0.05 per common share until the date that is three years from the date of closing.

The closing of the private placement is expected to result in the creation of a new control person, being Press Media LLC, and, as a result, the private placement will be deemed to have materially affected control of the company. Tinley’s confirms that it has been granted approval by the Canadian Securities Exchange to avoid seeking securityholder approval for the private placement and debt settlement and the creation of a new control person, as the company is in serious financial difficulty. 

Tinley’s independent directors have also determined that the private placement and debt settlement are in the best interests of the company and reasonable based on its current financial circumstances in order to keep it solvent. Tinley’s independent directors have determined that a rights offering to existing securityholders on the same terms would not be feasible to complete in the time frame necessary to allow the company to meet its obligations, including new and existing purchase orders.

Tinley’s confirms that certain company insiders have subscribed for an aggregate of 2,800,000 units under the private placement for an aggregate subscription price of $70,000 and that the company will settle $500,000 of indebtedness owing to certain insiders under the debt settlement, including $400,000 owing to Blaze Life Holdings, LLC pursuant to the terms of the company's management services agreement with BLH dated Jan. 23, 2023.