Affinor Growers Inc. (CSE: AFI; OTCQB: RSSFF), a vertical farming technology and operations company with a commercial production facility in Abbotsford, BC, announces that Rick Easthom has resigned as Chairman of the Company, effective immediately, to pursue his other business interests. Mr. Easthom will continue to serve as a director of the Company and as a member of the Company’s Audit Committee. Mr. Easthom has been an advisor for the Corporation since June 2014 and was appointed to the board of directors in 2016.
This news comes after Affinor Growers Inc. announced it hired Elite Agri Solutions to prepare grant applications for federal and provincial governments. The company also announced last week the undertaking of a private placement of up to 10,000,000 units at a price of CDN$0.20 per Unit for gross proceeds of up to CDN$2,000,000. 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 acquire one additional Share at a price of CDN$0.30 per Warrant Share, for a period of 24 months from the date of issuance.
Proceeds from the Offering will be used to increase production capacity in the Company’s current greenhouse and build the new Atlantis building for more production and allow for selling turnkey facilities as well as for working capital.
Nonetheless, the company has been under scrutiny as the BCSC alleges potential plan misrepresentation against the company and its CEO, CFO, and one of its directors over a CAD 4-million private placement. As reported by CTVNEWS, the company did not disclose that it intended to immediately spend more than 90 percent of that total on consulting fees, according to the B.C. Securities Commission.
“According to the commission, Affinor issued a release on March 5, 2018, announcing the $4 million and saying that proceeds would be used to fund Affinor’s operations and corporate development and for general working capital. Then, on March 8, 2018, the company issued a second release saying that it had closed the private placement’s first tranche of $3,999,666, again describing the proceeds as funding operations, corporate development and general working capital.” Says Ian Holliday CTVnews reporter “The BCSC says neither release acknowledged that the company would retain only about $325,000, or eight per cent of the total, with the rest being immediately spent on consulting fees.”