Sucro Ltd V.SUGR.WT

Sugarbud Craft provides more details re Alumina deal.

[NoamGottesmanss]

https://web.tmxmoney.com/article.php?newsid=8862253937168941&qm_symbol=SUGR

SugarBud Provides Additional Details With Respect to the Investment Agreement With Alumina Partners LLC

TSX-Venture Exchange: SUGR, SUGR.WT

CALGARY, Alberta, Dec. 28, 2018 (GLOBE NEWSWIRE) -- SugarBud Craft Growers Corp. (“SugarBud” or the “Company”) provides additional details with respect to the Company’s previously announced investment agreement (the “Agreement”) with Alumina Partners (Ontario) Ltd. (“Alumina”).

Pursuant to the terms of the Agreement, SugarBud may draw down capital on an as-needed basis in a series of equity offerings of up to a total of $25.0 million CAD over a twenty-four month period ending November 2020. The Company will initiate any draw-down by providing Alumina a written request indicating the proposed amount and timing of the draw-down, which Alumina will have the option to accept. Under the Agreement, SugarBud will offer units of the Company, each unit consisting of one common share in the capital of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant a “Warrant”). The unit price will be determined at the time of each draw-down at negotiated discounts ranging from 15% to 25% of the market price. Alumina will not be required to complete a draw-down if the market price of the Common Shares on the TSX Venture Exchange (the “TSXV”) as of the trading day prior to closing of the draw-down is below the unit price. The exercise price of the Warrants is expected to be at a 40% premium over the market price at time of issuance, or such lesser premium as may be determined by the mutual agreement of SugarBud and Alumina. Each whole warrant will entitle the holder to purchase one additional Common Share for a period of 36 months from the closing of the applicable draw-down. Closing of each draw-down will be subject to a number of conditions, including receipt of the approval of the TSXV. In no event may the securities issuable to Alumina pursuant to a draw-down, when aggregated with the Common Shares and Warrants held by Alumina on the closing date of such draw-down, exceed 9.99% of the outstanding Common Shares. Each draw-down will be completed on either a private placement or prospectus basis.

About Alumina

Alumina is a subsidiary of Alumina Partners LLC, a leading institutional investor in the Canadian cannabis space.

About SugarBud

SugarBud is a Calgary based emerging cannabis company engaged in the development, acquisition, production and distribution of cannabis in Canada.

For further information regarding this news release, please contact:

Craig Kolochuk President & Chief Executive Officer SugarBud Craft Growers Corp. Phone: [phone] E-mail: [e-mail]

Jeff Swainson Chief Financial Officer SugarBud Craft Growers Corp. Phone: [phone] E-mail: [e-mail]

Investor Relations Contact
Gary Perkins, President
Tekkfund Capital Corp.
Tel: [phone]
E-mail: [e-mail]

Website: https://www.sugarbud.ca/
Address: Suite 620, 634 - 6th Avenue S.W., Calgary, Alberta T2P 0S4
Telephone: [phone]
Fax: [phone]