Prime Drink Group shifts from rights offering to private placement

MONTREAL - Prime Drink Group Corp. (CSE:PRME), currently valued at $409.04 million with a beta of 2.41, announced Thursday it has terminated its previously disclosed rights offering and will instead proceed with a non-brokered private placement to raise up to $5 million.

The company plans to issue units priced at $5,000 each, with each unit comprising 62,500 common shares at a deemed price of $0.08 per share and 62,500 transferable share purchase warrants. Each warrant will allow the holder to purchase one common share at $0.085 for a two-year period. According to InvestingPro analysis, the company maintains a healthy current ratio of 3.56, though its overall financial health score indicates potential risks.

The private placement could result in the issuance of up to 62.5 million common shares and an equal number of warrants. Prime Drink Group will pay a 6% cash finder’s fee to arm’s-length parties who introduce subscribers to the offering.

Securities issued through this private placement will be subject to a four-month and one-day hold period in accordance with Canadian securities laws. The offering requires final approval from the Canadian Securities Exchange and other applicable regulatory bodies.

The Quebec-based company, which describes itself as focused on becoming a diversified holding company in the beverage, influencer media and hospitality sectors, intends to use the net proceeds for business development and general working capital purposes. The company has demonstrated remarkable revenue growth of 739% in the last twelve months. Get deeper insights into Prime Drink Group’s financial health and growth prospects with InvestingPro’s comprehensive analysis tools and expert research reports.

The announcement was made in a press release statement from the company.

In other recent news, Prime Medicine reported its second-quarter 2025 financial results, revealing a cash position of $115.4 million, down from $158.3 million in the previous quarter. The company also announced the commencement of an underwritten public offering of its common stock, with plans to grant underwriters a 30-day option to purchase an additional 15% of the shares offered. Meanwhile, Guggenheim has lowered its price target for Prime Medicine to $5.00 from $18.00, maintaining a Buy rating, reflecting adjusted expectations for the company’s development pipeline. Chardan Capital Markets also reduced its price target for Prime Medicine, setting it at $10.00 from $12.00, while keeping a Buy rating. In related developments, Prime Drink Group Corp. received an extension from the British Columbia Securities Commission to file its annual financial statements for the period ending March 31, 2025. The deadline for these filings has been extended to September 29, 2025. These updates provide investors with a snapshot of recent activities and projections concerning Prime Medicine and Prime Drink Group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.