/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, April 16, 2021 /CNW/ - 48North Cannabis
Corp. ("48North" or the "Company") (TSXV: NRTH) is
pleased to announce that the Company has closed its previously
announced overnight marketed public offering of units
("Units") of the Company (the "Offering") for total
gross proceeds of approximately $5.4
million, which included the partial exercise of the
over-allotment option granted by the Company to the Agents (defined
below). Pursuant to the Offering, 25,694,400 Units were sold at a
price of $0.21 ("Issue Price")
per Unit for gross proceeds of $5,395,824. The Offering was completed by a
syndicate of agents co-led by Cantor Fitzgerald Canada Corporation
and Cormark Securities Inc. (collectively, the
"Agents").
Each Unit is comprised of one common share of the Company (a
"Common Share") and one Common Share purchase warrant (a
"Warrant"). Each Warrant entitles the holder thereof to
purchase one Common Share at an exercise price of $0.26 for a period of 24 months following the
closing of the Offering.
As consideration for their services, the Agents received a cash
commission equal to 7.0% of the gross proceeds of the Offering. As
additional consideration, the Company issued a total of 1,541,664
broker warrants to the Agents. Each broker warrant is exercisable
into one Unit at the Issue Price for a period of 24 months
following the closing of the Offering.
"As our operations have evolved, 48North's core focus has not
changed: we are committed to building thoughtful, compelling, and
consumer focused brands. Consumer preferences and tastes are
evolving rapidly, and this strategic financing allows 48North to
build upon its strong market share and retail penetration, and to
expand its leading portfolio of high-quality, accessibly priced
products. Leveraging prior investments into our automated
Good:House manufacturing facility, we expect our focus on
increased margins, stronger cash flows, and shortening our cash
conversion cycle to generate lasting shareholder value.
Importantly, we will continue to focus on what we do best: bringing
flower to the people" said Charles
Vennat, CEO of 48North.
The Units were offered and sold by way of a short form
prospectus filed in each of the provinces of Canada, other than Quebec, and in the
United States on a private placement basis in accordance
with United States securities
laws. The Warrants are not listed for trading on any stock
exchange.
This press 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 state 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 does
not constitute an offer of securities for sale in the United States. The securities being
offered have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities
Act") or any state securities laws and may not be offered or
sold within the "United States" or
to "U.S. Persons" (as such terms are defined in Regulation S under
the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or in
compliance with an exemption from such U.S. registration
requirements.
About 48North
48North Cannabis Corp. (TSXV:NRTH) is a vertically
integrated cannabis company focused on manufacturing high-quality
products, building progressive and thought-provoking brands, and
low-cost cultivation. 48North is developing formulations and
manufacturing capabilities for its own proprietary products, as
well as positioning itself to contract manufacture similar products
for third parties. 48North operates two indoor-licensed cannabis
production sites in Ontario and
cultivates unique genetics at its wholly owned subsidiary, DelShen
Therapeutics Corp., and processes cannabis and manufactures
next-generation cannabis products at Good & Green Corp., both
licensed producers under the Cannabis Act.
DISCLAIMER & READER ADVISORY
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release. Certain statements contained in this
press release constitute forward-looking information. These
statements relate to future events or future performance. The use
of any of the words "could," "intend," "expect,"
"believe," "will," "projected," "estimated" and similar expressions
and statements relating to matters that are not historical facts
are intended to identify forward-looking information and are based
on the parties' current belief or assumptions as to the outcome and
timing of such future events. Actual future results may differ
materially. Please refer to the Company's SEDAR filings for further
details concerning the risks associated with the Company's
business. The forward-looking information contained in this release
is made as of the date hereof and the parties are not obligated to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws. Because of the risks,
uncertainties and assumptions contained herein, investors should
not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein. Public health crises,
including the ongoing novel coronavirus (COVID-19) pandemic, could
have significant economic and geopolitical impacts that may
adversely affect the Company's business, financial condition and/or
results of operations.
SOURCE 48North Cannabis Corp.