CALGARY, Nov. 18, 2019 /CNW/ - Sugarbud Craft Growers
Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to
announce the completion of its previously announced
non-brokered private placement for total proceeds of $925,000 (the "Private
Placement").
Pursuant to the Private Placement, Sugarbud issued a total of
18,500,000 units ("Units") of Sugarbud at a price of
$0.05 per Unit. Each Unit was
comprised of one common share ("Common Share") of Sugarbud
and one Common Share purchase warrant ("Warrant"). Each
Warrant entitles the holder to purchase one Common Share at a price
of $0.10 until November 18, 2021, subject to early expiry in the
event that the 5-day volume weighted average trading price of the
Common Shares equals or exceeds $0.125. The Common Shares and Warrants are
subject to a four month hold period under applicable securities
laws in Canada. The Private
Placement remains subject the final approval of the TSX Venture
Exchange (the "TSXV").
Sugarbud will use the proceeds of the Private Placement to
further develop its high capacity state-of-the-art vertical
cannabis cultivation facility in Stavely,
Alberta and for general working capital purposes.
Due to the participation of directors, officers and other
insiders of Sugarbud, who are related parties of Sugarbud pursuant
to Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions ("MI 61-101"),
the Private Placement constitutes a "related party transaction"
within the meaning of MI 61-101. In its consideration and approval
of the Private Placement, the board of directors of Sugarbud
determined that the Private Placement was exempt from the formal
valuation and minority approval requirements of MI 61-101 on the
basis that the fair market value of the Private Placement to
related parties did not exceed 25% of the market capitalization of
Sugarbud, in accordance with Sections 5.5 and 5.7 of MI 61-101.
Sugarbud has paid eligible finders a cash commission in
proportion to the gross proceeds received by Sugarbud that resulted
from such finder's efforts, subject to compliance with applicable
securities laws. Sugarbud has also issued finders non-transferrable
warrants ("Finder Warrants") to purchase Common Shares in
proportion to the number of Units issued to investors as a result
of such finder's efforts. Each Finder Warrant entitles the holder
to purchase one Common Share at a price of $0.10 until November 18,
2021, subject to early expiry in the event that the 5-day
volume weighted average trading price of the Common Shares equals
or exceeds $0.125. An aggregate of
$23,280 in finder's fees were paid to
finders and a total of 465,600 Finder Warrants were issued by
Sugarbud.
About Sugarbud
Sugarbud is a federally licensed Alberta-based publicly traded cannabis company
focused on the cultivation and production of high-quality premium
cannabis, and product leadership through the development,
production and distribution of exceptional value-added cannabis
products in Canada.
http://www.sugarbud.ca/
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More
particularly, and without limitation, this news release contains
statements concerning the Private Placement, including the use of
proceeds therefrom. When used in this document, the words "will,"
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "should," and similar expressions are intended to be
among the statements that identify forward-looking statements. The
forward-looking statements are founded on the basis of expectations
and assumptions made by Sugarbud. Forward-looking statements are
subject to a wide range of risks and uncertainties and although
Sugarbud believes that the expectations represented by such
forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially
from those in the forward-looking statements including, but not
limited to, the receipt of required regulatory and TSXV approvals,
and the timing thereof, and other factors more fully described from
time to time in the reports and filings made by Sugarbud with
securities regulatory authorities. Please refer to Sugarbud's most
recent annual information form and management's discussion and
analysis for additional risk factors relating to Sugarbud, which
can be accessed under Sugarbud's profile
on www.sedar.com. Except as required by applicable
laws, Sugarbud does not undertake any obligation to publicly update
or revise any forward-looking statements.
Neither the TSXV nor its regulation services provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE SugarBud Craft Growers Corp.