Last Update May 2021 GROWMAX PROVIDES CORPORATE UPDATE AND ANNOUNCES PRIVATE PLACEMENT
GrowMax Resources Corp. intends to complete the previously announced proposed change of business (COB) from mineral exploration to an investment issuer under the policies of the TSX Venture Exchange. The proposed COB was announced by GrowMax in a press release issued on July 11, 2019, and further described in its press release issued on Aug. 27, 2019. The completion of the proposed COB was delayed due to the company's former auditor, PwC, denying consent to the use of its name or use in whole or in part of the financial statements on which it provided an opinion for the years ended Dec. 31, 2017, and 2018 in the filing statement. The company has filed a revised filing statement with the TSX-V and is working toward obtaining conditional approval by the end of this month. Final approval of the proposed COB by the TSX-V remains subject to a number of conditions. Trading in the company's shares will remain halted until the TSX-V conditions to allow trading to resume have been satisfied.
Corporate update
The company is pleased to announce that, since March, 2020, it has made investments in Pike Therapeutics Inc., HAVN Life Sciences Inc., Alpha Esports Inc., Canagold Resources Ltd., Manning Ventures Inc., Telecure Technologies Inc., Canaccord Genuity Group Inc., Optimi Health Corp. and Rockshield Capital Corp. It intends to make investments in AuAg Exploration Inc., Montana Silver Mines LLC. and Moneyline Sportsbook Inc.
Pike Therapeutics is a biotechnology corporation focused on developing Food and Drug Administration-approved treatments for unmet medical needs, by formulating synthetic cannabinoids in combination with a superior, proprietary delivery platform (patch).
HAVN Life Sciences provides a range of standardized, quality-controlled microdosing therapies to consumers and to provide cutting-edge technology and intellectual property for mental health and human performance with a primary focus on psychedelic and natural health care products. HAVN is listed on the Canadian Securities Exchange under the symbol HAVN.
Alpha Esports is technology company with a focus in e-sports, on-line gaming platforms and blockchain. Alpha Esports is listed on the Canadian Securities Exchange under the symbol ALPA.
Canagold Resources (formerly, Canarac Resources Corp.) is a Canadian mineral exploration firm engaged in the acquisition, exploration and development of mineral resource property interests.
Manning Ventures is led by a group of experienced exploration professionals that expose shareholders to multiple sectors designed to capitalize on ever-changing hot-cold cycles in mineral exploration and to generate meaningful growth and return.
Telecure Technologies is a United States-focused health IT company that specializes in using technology to make health care more accessible and efficient.
Canaccord Genuity Group is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Canaccord is listed on the Toronto Stock Exchange under the symbol CF.
Optimi Health is an actively managed investment company focused on investing in high-growth companies and sectors. Optimi Health is listed on the Canadian Securities Exchange under the symbol OPTI.
Rockshield Capital is an actively managed investment company focused on investing in high-growth companies and sectors. Rockshield Capital is listed on the Canadian Securities Exchange under the symbol RKS.
AuAg Exploration's principal business is the acquisition, exploration and development of mineral resource properties. Its objective is to locate, define and ultimately develop economic mineral deposits. Currently, it is focused on the exploration and development of the Christmas gold property located in the Eldorado mining district in Lehmi county, Idaho, that it acquired when it acquired Montana Silver Mines LLC in September, 2020.
Montana Silver Mines, now a subsidiary of AuAg Exploration, is a mineral exploration company focused on the exploration and development of the Christmas gold property located in the Eldorado mining district in Lehmi county, Idaho.
MoneyLine Sportsbook was established to acquire and operate on-line legal sportsbooks in the United States where on-line betting is legal or will be going legal near term and in Canada when the anticipated legalization of sports betting occurs. MoneyLine currently has an option to acquire the operating Elitesportbook entity which owns legal sportsbook licences in Colorado and has market access rights to launch on-line sportsbook in Iowa. MoneyLine is a private company which plans to seek a public listing in the fall of 2021. More information of MoneyLine can be accessed at its website.
Private placement
In connection with the proposed COB, the company is pleased to announce a non-brokered private placement of up to 19 million units at a price of 6.5 cents per unit for gross proceeds of up to $1,235,000. Each unit will consist of one common share of the company and one share purchase warrant. Each warrant will entitle the holder to acquire one additional share at a price of eight cents per share, for a period of five years from the date of issuance.
In accordance with applicable securities laws, all securities issued under the offering will be subject to a four-month-and-one-day hold period from the date of issuance. Closing of the offering is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX-V.
An insider of the company may participate in the offering. Such participation will be considered a related-party transaction as defined under Multilateral Instrument 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to such insider nor the consideration that will be paid by such person will exceed 25 per cent of the company's market capitalization.
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