Greenlane Renewables Inc T.GRN

Greenlane Renewables Announces $20 MIL bought Deal

[Puffpuff02]

Greenlane Renewables Announces $20 Million Bought Deal

  

19 janv. 2021 16h29 HE  | Source :  Greenlane Renewables Inc.

 

 

Not for Distribution to United States Newswire Services or Dissemination in the United States

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA), OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

VANCOUVER, British Columbia, Jan. 19, 2021 (GLOBE NEWSWIRE) -- Greenlane Renewables Inc. (TSXV: GRN) (“Greenlane” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. (the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 9,220,000 common shares of the Company (the "Shares") at a price of $2.17 per Share, for gross proceeds of approximately $20 million (the "Offering"). The Company will also grant to the Underwriters an over-allotment option (the "OverAllotment Option") to increase the size of the Offering by up to an additional 15%, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering.

The Company will use the net proceeds of the Offering for development of and investments in new renewable natural gas projects, for strategic growth initiatives, and for general corporate purposes (including the Company’s ongoing business initiatives) and working capital.

The Offering is expected to close on or about January 27, 2021, subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The Shares will be issued pursuant to a prospectus supplement that will be filed with the securities regulatory authorities in each of the provinces of British Columbia, Alberta, Manitoba and Ontario under the Company’s base shelf prospectus dated July 31, 2019 and may also be offered by way of private placement into the United States pursuant to Rule 144A. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, unless an exemption from registration is available. This news release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.

[1condor]

Bought deal for 2.17 a share. That is going to provide a good opportunity for folks who want to open a position or add to GRN. Almost a guarantee that the stock price dips down very close to that price before the Deal closes. Many on this board will say it wont dip that low...but it will.

[filoux004]

I think you see 2.30 open ...

[1troffer]

You are correct, the sp usually drops to pp price. Get your buy finger ready for 2.10. 

[1troffer]

Maybe only drops to 2.20. Does Greenlane make any money yet? Asking for a friend

[filoux004]

Given its TD and how hot the space is we may be surprised,. I think open is 2.30$

[1condor]

filoux004...you may be right with an open tomorrow at 2.30...but until the 'closing of the deal' that 2.17 will hinder the share price. These thoughts are just based on my past experience with bought deals.

[CashCow23]

It's a bought deal led by one broker. This is as good as closed. Buy at the open and enjoy the rest of the ride. TD will initiate coverage in Feb and prior to that analysts will upgrade their PT to account for expansion in multiples. Someone wealthy gone lucky at 2.17. Ugh 

[RustyyWaters]

So far, I've only had good experiences with bought deals. They usually cause a slight pullback for a few days so you can load up, but ultimately they provide a nice price floor and actually show confidence from large investors who know more than the public does. If you can get in near where they do, I'll do that all day long.

[oceaneleven]

Bought deal done...time to re-enter...

[MB11111]

Let's remind ourselves...2.17 $ was only about two trading days ago...  bought deal  with no warrant attached...TD will lose no time and provide new Price target in the coming month which will coincide with Q4 and FYE 2020 results which we know will be at record level. Very positive and bullish move IMO.   glta