Green Growth arranges $50.22M bought deal offering 2019-07-23 16:36 ET - News Release
An anonymous director reports
GREEN GROWTH BRANDS ANNOUNCES BOUGHT DEAL PUBLIC OFFERING OF UNITS
Green Growth Brands Inc. has entered into an agreement with a group of investment dealers, led by Canaccord Genuity Corp., pursuant to which the underwriters will purchase, on a bought deal basis pursuant to the filing of a short-form prospectus, an aggregate of 20.5 million units of the company at a price of $2.45 per unit for aggregate gross proceeds of $50,225,000.
Each unit will comprise one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder to acquire one common share of the company at a price of $3.50 per underlying common share, subject to adjustment in certain events, for a period of three years following the closing date (as defined herein). The company intends to apply to list the warrants on the Canadian Securities Exchange.
The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 3,075,000 units at the offering price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing date. If this option is exercised in full, an additional $7,533,750 in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be $57,758,750.
The units will be offered by way of a short-form prospectus to be filed in the provinces of British Columbia, Alberta, Ontario and Nova Scotia, as agreed by the company and the underwriters. The company intends to use the net proceeds from the offering, in part, (i) to finance the cash purchase price payable by the company to complete its acquisition of Nevada Organic Remedies, (ii) to finance the cash purchase price payable by the company to complete its acquisition of Henderson Organic Remedies and (iii) to finance the cash purchase price payable by the company to complete its acquisition of Spring Oaks, with (iv) the balance, if any, for company's continuing capital expenditures and general corporate purposes.
Closing of the offering is expected to occur on or about Aug. 21, 2019, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the CSE and the applicable securities regulatory authorities.
About Green Growth Brands Inc.
Green Growth Brands creates remarkable experiences in cannabis and cannabidiol. Led by chief executive officer Peter Horvath and a leadership team of consumer-focused retail experts, the company's brands include Camp, Seventh Sense Botanical Therapy, The+Source, Green Lily, and Meri + Jayne. The company also has a licensing agreement with the Greg Norman brand to develop a line of CBD-infused personal care products designed for active wellness.
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