Red Light Holland (TRIP) has been receipted for its final short form prospectus filed with the securities commissions.
The underwriter, Eight Capital, has agreed to purchase 23 million units of the company on a "bought deal" basis, at a price of CAD$0.44 per unit for gross proceeds of C$10,120,000.
The company has also granted the Underwriter an over-allotment option to purchase up to an additional 15% of the units at the issue price, exercisable in whole or in part, within 30 days following the closing of the offering. If this option is exercised in full, approximately $1,500,000 of additional proceeds will be raised and the aggregate proceeds will be approximately C$11,600,000.
Each unit will be comprised of one common share and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $0.70, for a period of 36 months following the closing of the offering.
If the daily volume-weighted average trading price of the common shares on the CSE for any 10 consecutive days equals or exceeds $1.52, the company may accelerate the expiry date of the warrants.
The company intends to use the net proceeds for operational expansion, business development, business acquisitions, and working capital and general corporate purposes.
The closing date of the offering is scheduled to be on or about February 24, 2021.
Red Light Holland Corp. is an Ontario-based corporation engaged in the production, growth and sale of a premium brand of magic truffles to the legal, recreational market within the Netherlands.
Red Light Holland Corp. is down 1.85 per cent, trading at C$0.53 per share at 10 am EST.