Next Green Wave Holdings Inc. NXGWF

NGW Closes $2.75 Million Private Placement with CGOC

[Adanac]

Thursday, June 27, 2019, 4:33 AM ET

Vancouver, British Columbia--(Newsfile Corp. - June 27, 2019) - Next Green Wave Holdings Inc. (CSE: NGW) (OTCQB: NXGWF) ("Next Green Wave", "NGW" or the "Company") announces that it has closed a non-brokered $2.75 million financing (the "Financing") at a price of $0.25 per common share, and in exchange will issue a total of 11 million shares of NGW to the Cannabis Growth Opportunity Corporation ("CGOC"). In addition, the company will subscribe to a private placement to acquire $1.25 million common shares of CGOC at a price of $1.72 per share. The Financing will incur no finder's fees and replaces its most recent offering announced on June 19, 2019. 
Both companies respectively, have entered into a voting and resale agreement to hold their shares until February 1, 2020, as well as vote in favour of management on any issues requiring a shareholder vote. 
The proceeds will be used to advance the Company's strategic partner alliances in California and provide working capital to accelerate its operations.
 
Jamie Blundell, President and Chief Operating Officer of CGOC commented, "We have been strategic investors in Next Green Wave since June 2018 when they were still a private company and have continued to support their efforts through their go-public transaction in October 2018. They anticipate near-term revenue generation and at the low-end of their annual revenue expectations we believe their current valuation is extremely low especially compared to similar companies. We remain confident in their strategy as we see tremendous growth ahead and believe this is a perfect entry point for investors." 

Next Green Wave CEO and Executive Director, Leigh Hughes stated: "Due to comparative weakness in the cannabis sector while markets adjust and earnings expectations naturally become heightened, we have chosen to collaborate with a strong industry partner who shares our vision and will assist us to move towards revenue at the earliest possible opportunity - our near-term focus is on production, product roll-outs and sales - we believe that the Company can achieve this milestone without further financing."
 

On behalf of the board, 

Leigh Hughes, 

CEO and Executive Chairman

[BuhlzI]

So what's your analysis of this new?

[BuhlzI]

So whats your analysis of this news?

[Adanac]

This deal will make raising funds easier going forward as CGOC is not tied in more than ever. Cash is king right now for NGW so this is a strong strategic move. As well, an exerpted consistent with my views from the announcement is as follows: Jamie Blundell, President and Chief Operating Officer of CGOC commented, "We have been strategic investors in Next Green Wave since June 2018 when

[BuhlzI]

Your not concerned about further dillution?

[Adanac]

Nope! I worry more about debt...

[weedstocks83]

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