CALGARY, Dec. 27, 2019 /CNW/ - Sugarbud Craft Growers
Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to announce the
completion of its previously announced rights offering (the "Rights
Offering") to holders ("Shareholders") of common shares of Sugarbud
("Common Shares"). Under the Rights Offering, Shareholders
subscribed for and purchased an aggregate of 16,272,075 units
(each, a "Unit"), at a price of $0.055 per Unit, resulting in gross proceeds to
Sugarbud of $894,964. Each Unit
consists of one Common Share and one Common Share purchase warrant
(each, a "Warrant"). The Warrants are governed by a warrant
indenture agreement between Sugarbud and Computershare Trust
Company of Canada (the
"Indenture"). In accordance with, and subject to the terms and
conditions of, the Indenture, each Warrant entitles the holder
thereof to purchase one Common Share at a price of $0.10 until December 20,
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.
Following the completion of the Rights Offering, Sugarbud has
393,668,532 Common Shares outstanding.
Sugarbud will use the proceeds of the Rights Offering to further
develop its high capacity state-of-the-art vertical cannabis
cultivation facility in Stavely,
Alberta and for general working capital purposes.
"We are grateful for the support shown by our shareholders
during the rights offering and look forward to a very exciting and
productive 2020 as we begin to rapidly scale up our commercial
efforts," stated Sugarbud CEO, John
Kondrosky. "We continue to execute well against a very
disciplined capital spending and commercial plan that remains
focused on maximizing value through the near-term expansion of
cultivation capacity and production of exceptional dry cannabis
flower products which we expect will begin to generate sustainable
positive cash flow by late Q3 2020," Mr. Kondrosky added.
Sugarbud also announces that, pursuant to the terms and
conditions of its stock option plan, it has cancelled a total of
6,750,000 Options granted to certain directors of Sugarbud. The
cancelled Options were voluntarily surrendered by the holders
thereof for no consideration. The exercise prices of the cancelled
Options ranged from $0.10875 to
$0.185 per Common Share.
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 use of proceeds from the Rights
Offering. 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.