Auxly Announces $8.0 Million Private Placement
May 13 2021 - 8:56AM
Auxly Cannabis Group Inc. (“
Auxly” or the
“
Company”) (TSX: XLY) (OTCQX: CBWTF) is pleased to
announce that it has entered into an agreement with an
institutional investor (the “
Investor”) pursuant
to which the Investor has agreed to purchase, on a private
placement basis, 23,880,597 units (the "
Units") of
the Company at a price of $0.335 per Unit for aggregate gross
proceeds of approximately $8.0 million (the
"
Offering"). ATB Capital Markets Inc. is acting as
exclusive agent on the Offering.
Each Unit shall be comprised of one common share
of the Company (each a "Common Share") and
one-half of one Common Share purchase warrant of the Company (each
whole warrant, a "Warrant"). Each Warrant shall
entitle the Investor to purchase one Common Share at an exercise
price of $0.42 at any time up to 36 months from Closing (as defined
below).
The net proceeds from the Offering will be used
for working capital and general corporate purposes.
The closing of the Offering is expected to occur
during the week of May 17, 2021 (the “Closing”),
or such later or earlier date as the Investor and the Company may
agree upon, and is subject to the completion of formal
documentation and the Company receiving all necessary regulatory
approvals, including the approval of the Toronto Stock Exchange.
The Units will be offered pursuant to applicable exemptions from
the prospectus requirements of Canadian securities laws and shall
be subject to a customary four-month hold period under Canadian
securities laws.
No securities regulatory authority has either
approved or disapproved of the contents of this news release. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. This news
release is not an offer to sell or the solicitation of an offer to
buy the securities in the United States or in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
qualification or registration under the securities laws of such
jurisdiction. The securities being offered have not been, nor will
they be, registered under the United States Securities Act of 1933,
as amended, and such securities may not be offered or sold within
the United States or to, or for the account or benefit of, U.S.
persons absent registration or an applicable exemption from U.S.
registration requirements and applicable U.S. state securities
laws.
ON BEHALF OF THE BOARD
"Hugo Alves" CEO
About Auxly Cannabis Group Inc. (TSX:
XLY)Auxly is a leading Canadian cannabis company dedicated
to bringing innovative, effective, and high-quality cannabis
products to the wellness and adult-use markets. Auxly's experienced
team of industry-first movers and enterprising visionaries have
secured a diversified supply of raw cannabis, strong clinical,
scientific and operating capabilities and leading research and
development infrastructure in order to create trusted products and
brands in an expanding global market.
Learn more at www.auxly.com and stay
up to date at Twitter: @AuxlyGroup; Instagram:
@auxlygroup; Facebook: @auxlygroup; LinkedIn:
company/auxlygroup/.
Investor Relations:For investor
enquiries please contact our Investor Relations
Team:Email: IR@auxly.comPhone: 1.833.695.2414
Media Enquiries
(only): For media enquiries or to set up an interview
please contact:Email: press@auxly.com
Notice Regarding Forward Looking
Information:
This news release contains certain
"forward-looking information" within the meaning of applicable
Canadian securities law. Forward-looking information is frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
information that certain events or conditions "may" or "will"
occur. This information is only a prediction. Various assumptions
were used in drawing the conclusions or making the projections
contained in the forward-looking information throughout this news
release. Forward-looking information includes, but is not limited
to: the proposed completion of, and the expected use of proceeds
of, the Offering; the Company’s response to the COVID-19 pandemic;
future legislative and regulatory developments involving cannabis
and cannabis products; and competition and other risks affecting
the Company in particular and the cannabis industry generally.
A number of factors could cause actual results
to differ materially from a conclusion, forecast or projection
contained in the forward-looking information in this release. The
forward-looking information in this release is based on information
currently available and what management believes are reasonable
assumptions. Forward-looking information speaks only to such
assumptions as of the date of this release. Readers should not
place undue reliance on forward-looking information contained in
this release. The forward-looking information contained in this
release is expressly qualified by the foregoing cautionary
statements and is made as of the date of this release. Except as
may be required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking information to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events, whether as a result of new information,
future events or results, or otherwise.Additional risk factors are
disclosed in the annual information form of the Company for the
financial year ended December 31, 2020 dated April 23, 2021.
New factors emerge from time to time, and it is
not possible for management to predict all of those factors or to
assess in advance the impact of each such factor on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward‐looking information.
Neither Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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