Sugarbud Announces Closing of Private Placement
November 18 2019 - 11:16PM
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/
John Kondrosky Chief Executive Officer Sugarbud
Craft Growers Corp. Phone: (604) 499-7847 E-mail:
johnk@sugarbud.ca |
Investor Relations Contact Gary Perkins,
President Tekkfund Capital Corp. Tel: (416) 882-0020
E-mail: garyperkins@rogers.com
Website:
http://www.sugarbud.ca/
Address: Suite 620, 634 - 6th Avenue S.W.,
Calgary, Alberta T2P 0S4
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.
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