TSX-Venture Exchange: RRL
SugarBud Craft Growers Corp. (“
SugarBud” or the
“
Company”) (trading as Relentless Resources Ltd.)
is pleased to announce that it will commence trading on the TSX
Venture Exchange (“
TSXV”) under the stock symbol
“SUGR” on October 26, 2018 and that it has completed certain of the
previously announced transactions which collectively constituted
the Company’s change of business (the “
Change of
Business”).
SugarBud Highlights
- With approximately $10 million in cash(1), no debt, and a
$17.65 million commitment letter with Farm Credit Canada, SugarBud
is well-positioned to execute on its cannabis cultivation,
processing, and medical/retail distribution strategy;
- SugarBud has a team with a track record of success supported by
a board with a strong mix of cannabis, oil and gas, start-up,
transaction, business and regulatory experience;
- Cultivation license applied for and anticipated by year-end
2018;
- Line of sight to over 400 top-tier cannabis strains with
genetics to be profiled and mapped;
- Phase 1 of SugarBud’s cannabis cultivation facility at Stavely,
Alberta has been erected and internal construction is currently
being completed;
- $2.1 million(2) liquid equity investment in Inner Spirit
Holdings Ltd. (“Inner Spirit”), with the second
tranche expected to close in the coming weeks; and
- Planned retail distribution of cannabis through Inner Spirit’s
network of Spiritleaf dispensaries and other avenues.
Notes: (1) CAD, after giving effect to the fully-subscribed
rights offering (described below). (2) Prior to giving effect to
the second tranche, based on closing Inner Spirit market price on
October 23, 2018 of $0.28 per share.
Craig Kolochuk, President and Chief Executive
Officer of SugarBud stated: “The completion of our listing as a
Tier 2 Life Sciences Issuer is an incredible milestone for our
company. We would like to thank the TSXV for their diligence and
guidance throughout the change of business process, our team for
their hard work, and our shareholders for their continued belief in
our story. We will continue to focus on the construction of our
Stavely, Alberta facility to ensure that we are on-time and
on-budget, and moving forward we will pursue other high-impact
objectives to create value for our stakeholders.”
Change of Name and Stock Symbol
The TSXV has formally approved the Company’s
name change from “Relentless Resources Ltd.” to “SugarBud Craft
Growers Corp.” and the common shares in the capital of the company
(the “Common Shares”) will commence trading on the
TSXV under the Company’s new name and new trading symbol “SUGR” at
the market opening on October 26, 2018.
Acquisition of Grunewahl Organics
Inc.
On October 23, 2018, the Company, through its
wholly owned subsidiary 2114152 Alberta Ltd., acquired all of the
issued and outstanding shares in the capital of Grunewahl Organics
Inc. (“Grunewahl”), whose subsidiary is a
late-stage applicant to become a licensed producer under Health
Canada’s Access to Cannabis for Medical Purposes Regulation (the
“Acquisition”). Pursuant to the Acquisition, the
Company issued an aggregate of 19,259,993 Common Shares to former
holders of shares in the capital of Grunewahl. Certain directors of
the Company are also directors and officers of Grunewahl. As a
result, the Acquisition did not constitute an Arm’s Length
Transaction pursuant to the policies of the TSXV.
Rights Offering
The Company has received final approval from the
TSXV to issue certificates representing the Common Shares and
common share purchase warrants (“Warrants”)
issuable to participants of the previously announced fully
subscribed rights offering, the results of which were announced on
September 20, 2018. The Company is in the process of effecting the
distribution of the Common Shares and Warrants.
Investment with Inner
Spirit
In the coming weeks, the Company expects to
complete the second tranche of a strategic investment with Inner
Spirit pursuant to which: (i) the Company will issue to Inner
Spirit an aggregate of 8,108,108 Common Shares and 1,125,000 share
purchase warrants, each whole warrant entitling Inner Spirit to
purchase one Common Share at a price of $0.30 per share for a
period of 24 months from the date of issue; (ii) the Company will
receive an additional 7,500,000 units of Inner Spirit, each unit
consisting of one common share in the capital of Inner Spirit and
one-half of one Inner Spirit warrant, each whole warrant entitling
the Company to purchase one Inner Spirit share at a price of $0.30
per share for a period of 24 months from the date of issue and
vesting immediately upon issue; and (iii) the Company will execute
a strategic alliance agreement with Inner Spirit that will govern
the on-going business relationship of the parties. William
Macdonald, a director of the Company, is also a director of Inner
Spirit. As a result, the transactions with Inner Spirit will not
constitute an Arm’s Length Transaction pursuant to the policies of
the TSXV.
Appointment of Tekkfund
The Company engaged Tekkfund Capital Corp.
(“Tekkfund”) effective as of May 24, 2018 to
provide financial communications, investor relations and corporate
communications services for an initial term of two years.
Tekkfund will work with the Company’s leadership team to advance
its broad communications goals and support continued growth.
Tekkfund will provide support at levels that will vary depending on
the Company’s needs. The Company anticipates that Gary Perkins,
President of Tekkfund, at his principal office in Toronto, Ontario,
will provide significant value as the Company executes on its
business plan. Mr. Perkins provides investor relations services to
issuer’s across Canada. Tekkfund is an arm’s length party who will
be paid an agreed upon monthly fee in exchange for their investor
relations related services at an anticipated total cost of $107,500
for two years.
Additional Information
For additional information regarding SugarBud
and the Change of Business, please refer to the filing statement of
SugarBud dated October 9, 2018 (the “Filing
Statement”), which is available under the Company’s
profile on SEDAR at www.sedar.com.
About SugarBud Craft Growers
Corp.
SugarBud is a Calgary based emerging cannabis
company engaged in the development, acquisition and production of
cannabis in Canada.
For further information regarding this news
release, please contact:
Craig Kolochuk President
& Chief Executive Officer SugarBud Craft Growers Corp.
Phone: (403) 875-5665 E-mail: craigk@sugarbud.ca |
Jeff SwainsonChief
Financial Officer SugarBud Craft Growers Corp. Phone:
(403) 796-3640 E-mail:
jeffs@sugarbud.ca |
|
Investor Relations
ContactGary Perkins, PresidentTekkfund Capital Corp.Tel:
(416) 882-0020E-mail: garyperkins@rogers.comWebsite:
http://www.sugarbud.caAddress: Suite 620, 634 ‐ 6th Avenue S.W.,
Calgary, Alberta T2P 0S4Telephone: 403‐532‐4466Fax:
587‐955‐9668 |
|
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
Forward-Looking Statements
This news release may include forward-looking
statements including opinions, assumptions, estimates, the
Company’s assessment of future plans and operations, and, more
particularly, statements concerning the completion of the
Transactions, a proposed credit facility with Farm Credit Canada,
access to cannabis strains and retail opportunities and the trading
in the Common Shares under the new name and new symbol. 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
the Company. Forward-looking statements are subject to a wide range
of risks and uncertainties, and although the Company 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: regulatory and third
party approvals, including receipt of cultivation and sales
licenses from Health Canada, not being obtained in the manner or
timing anticipated; the ability to implement corporate strategies;
the state of domestic capital markets; the ability to obtain
financing; changes in general market conditions; industry
conditions and events; the size of the medical marijuana market and
the recreational marijuana market; government regulations,
including future legislative and regulatory developments involving
medical and recreational marijuana; construction delays;
competition from other industry participants; and other factors
more fully described from time to time in the reports and filings
made by the Company with securities regulatory authorities. Please
refer to the Filing Statement for additional risk factors relating
to the Company. The Filing Statement is accessible under the
Company’s profile on www.sedar.com. Except as required by
applicable laws, the Company does not undertake any obligation to
publicly update or revise any forward-looking statements.
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