FORM 45-106F2 Offering Memorandum for Non-Qualifying Issuers Amended and Restated
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FORM 45-106F2 Offering Memorandum for Non-Qualifying Issuers Amended and Restated November 24, 2017 The Issuer: Name: MacMhaol-onfhaidh (‘Macaloney’) Brewers & Distillers Ltd. (the “Corporation” or “MBD”) Head Office: Victoria Caledonian Distillery & Twa Dogs Brewery, 761 Enterprise Crescent, Saanich, B.C., V8Z 6P7 (250) 634 2276; [email protected] Currently listed or quoted? No. These securities do not trade on any exchange or market. Reporting issuer? No. SEDAR filer? No. The Offering: Securities offered: Units. Each unit (a “Unit”) is composed of: . one common class A share (a “Common Share”); . one quarter of a Common Share purchase warrant exercisable until 19 months from the date of the closing pursuant to which a subscriber purchased their Units (each whole warrant of this kind referred to as an “MBD ‘A’ Warrant”); and . one quarter of a Common Share purchase warrant exercisable until 31 months from the date of the closing pursuant to which a subscriber purchased their Units (each whole warrant of this kind referred to as an “MBD ‘B’ Warrant”). Each whole MBD “A” Warrant entitles the holder to purchase one Common Share at a price per Common Share equivalent to the Unit price and each whole MBD “B” Warrant entitles the holder to purchase one Common Share at a price per Common Share equivalent to the Unit price multiplied by 110%. The subscriber will be granted certain rights (the “Rights”) pursuant to a rights agreement (the “Rights Agreement”) to be entered into between MBD, Dr. Graeme Macaloney and, among others, subscribers under this Offering Memorandum (see Item 5.1.4 – The Rights). No certificates will be issued in respect of the Rights and these Rights cannot be assigned or otherwise transferred. Price per security: The price per Unit is dependent upon the overall amount of your investment and the period in which you make your subscription for Units (see Item 5.3 – Pricing of Units). The price per Unit has been determined by MBD arbitrarily (see Item 8 – Risk Factors). Minimum offering: MBD was required to raise a minimum of $2,800,000 CAD in total share sales before closing under this offering. MBD exceeded this target on September 30, 2014, and conducted an initial closing under this offering. Going forward, there is no minimum offering. Maximum offering: $722,539 CAD Funds available under this Offering may not be sufficient to accomplish the proposed objectives. Minimum subscription: The minimum amount each investor must invest is $10,000.00 CAD Payment terms: By certified cheque or bank draft payable to “Breakwater Law In Trust” with a memo indicating “for investment in MBD”. Funds will be held in trust on the terms described in Item 5.2.1 – Trust Conditions. Proposed closing Closings will occur at the discretion of the Board of Directors until the maximum offering is reached. date(s): Selling agents. Yes. (see Item 7 – Compensation Paid to Sellers and Finders). Resale restrictions - Other than in the specific circumstances described herein, as MBD is not a reporting issuer in any jurisdiction, you will be restricted from selling your securities for an indefinite period (see Item 10 – Resale Restrictions). Purchaser’s rights – You have 2 business days to cancel your agreement to purchase these securities. If there is a misrepresentation in this Offering Memorandum, you have the right to sue either for damages or to cancel the agreement (see Item 11 – Purchaser’s Rights). This offering memorandum constitutes a private offering of these securities only in those jurisdictions where they may be lawfully offered for sale. No securities regulatory authority has assessed the merits of these securities or reviewed this Offering Memorandum. Any representation to the contrary is an offence. This is a risky investment (see Item 8 – Risk Factors). The securities offered hereby have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to United States persons. An investment in the securities offered hereunder should be considered highly speculative and involves certain risk factors which should be taken into consideration. The securities offered hereunder should be purchased only after a full review of this Offering Memorandum. In addition to this Offering, MBD may conduct other offerings on terms that may differ from those contained herein. Offering Memorandum - November 24, 2017 Page 2 MBD TABLE OF CONTENTS GLOSSARY ........................................................................................................................................................ 1 1. USE OF AVAILABLE FUNDS .................................................................................................................... 4 1.1 FUNDS .................................................................................................................................................................. 4 1.2 USE OF AVAILABLE FUNDS .................................................................................................................................. 5 1.3 REALLOCATION .................................................................................................................................................... 5 2 BUSINESS OF MBD .................................................................................................................................... 6 2.1 STRUCTURE .......................................................................................................................................................... 6 2.2 MBD’S BUSINESS ................................................................................................................................................ 6 2.3 DEVELOPMENT OF BUSINESS .................................................................................................................................... 24 2.4 LONG TERM OBJECTIVES .......................................................................................................................................... 25 2.5 SHORT TERM OBJECTIVES AND HOW MBD INTENDS TO ACHIEVE THEM .......................................................................... 26 2.6 INSUFFICIENT FUNDS ............................................................................................................................................... 26 2.7 MATERIAL AGREEMENTS ......................................................................................................................................... 26 3 INTERESTS OF DIRECTORS, MANAGEMENT, PROMOTERS AND PRINCIPAL HOLDERS ............... 29 3.1 COMPENSATION AND SECURITIES HELD ............................................................................................................ 29 3.2 MANAGEMENT EXPERIENCE .............................................................................................................................. 30 3.3 PENALTIES, SANCTIONS AND BANKRUPTCY ...................................................................................................... 32 4 CAPITAL STRUCTURE ........................................................................................................................... 33 4.1 SHARE CAPITAL ................................................................................................................................................. 33 4.2 LONG TERM DEBT SECURITIES .......................................................................................................................... 34 4.3 PRIOR SALES ...................................................................................................................................................... 34 5 SECURITIES OFFERED .......................................................................................................................... 35 5.1 TERMS OF SECURITIES ....................................................................................................................................... 35 5.2 SUBSCRIPTION PROCEDURE ............................................................................................................................... 36 5.3 PRICING OF UNITS .............................................................................................................................................. 37 6 INCOME TAX CONSEQUENCES AND ELIGIBILITY FOR REGISTERED INVESTMENTS .............. 37 6.1 INCOME TAX CONSEQUENCES ........................................................................................................................... 37 6.2 TAX CREDITS UNDER THE INVESTMENT CAPITAL PROGRAM ............................................................................ 37 6.3 RRSP, RRIF & TFSA ELIGIBILITY AND LIFETIME CAPITAL GAINS EXEMPTION .............................................. 39 7 COMPENSATION PAID TO SELLERS AND FINDERS .......................................................................... 39 8 RISK FACTORS ........................................................................................................................................ 39 9 REPORTING OBLIGATIONS .................................................................................................................. 45 10 RESALE RESTRICTIONS .................................................................................................................... 45 10.1 GENERAL STATEMENT ..................................................................................................................................