Sugarbud Announces Closing of $4.6 Million Bought-Deal Public Offering, Including Full Exercise of Over-Allotment Option
March 16 2021 - 9:50AM
Sugarbud Craft Growers Corp. (TSXV:SUGR, SUGR.WT, SUGR.WS, SUGR.DB)
("
Sugarbud" or the "
Company") is
pleased to announce the closing of its previously-announced
bought-deal public offering (the “
Offering”)
pursuant to which the Company issued 76,670,500 units of the
Company (the “
Units”) at a price of $0.06 per Unit
(the “
Offering Price”) for aggregate gross
proceeds to the Company of $4,600,230, including the full exercise
of the over-allotment option.
The Offering was led by Mackie Research Capital
Corporation as the sole underwriter and sole bookrunner (the
“Underwriter”).
The net proceeds from the Offering will be used
for additional processing and production equipment purchases,
facility upgrades, further new product development, working capital
and general corporate purposes, including the national launch of
Sugarbud’s expanded portfolio of Cannabis 2.0 products.
"We are very pleased with the result of this
bought-deal public offering and view the outcome as yet another
strong vote of confidence in the combined leadership of our
management team, our focused business model, our execution to date
and our prospects for success moving forward. Sugarbud remains very
focused on revenue creation and this latest financing will provide
the Company with additional valuable resources to accelerate our
growth plans," stated Sugarbud's Chief Executive Officer, John
Kondrosky.
Each Unit is comprised of one common share of
the Company (a "Common Share") and one Common
Share purchase warrant of the Company (a
"Warrant"). Each Warrant entitles the holder
thereof to purchase one Common Share at an exercise price of $0.08
at any time until March 16, 2024.
The Offering is subject to the final approval of
the TSX Venture Exchange (the "TSXV").
In consideration for the services provided by
the Underwriter, the Company issued 5,366,935 non-transferrable
warrants to the Underwriter, each such warrant entitling the
Underwriter to purchase one Unit at a price of $0.06 at any time
until March 16, 2024.
About Sugarbud
Sugarbud is an Alberta-based, consumer-driven
boutique craft cannabis company focused on the cultivation and
production of superior, select-batch, craft cannabis products. Our
vision and mission are to become a trusted and well-respected
consumer brand renowned for providing exceptional high-quality
craft cannabis products to legal markets by delighting the
most discerning of cannabis consumers.
The Sugarbud Craft Cannabis Collection offers
consumers "Hand-Crafted Cannabis for a New Era". The Company is
proudly Albertan and is proud to share Western Canada's long
tradition of exceptional craft cannabis with the most discerning of
enthusiasts. Sugarbud strives to define the intersection of product
craftsmanship, quality, and value for consumers in the Canadian
craft cannabis space.
John KondroskyChief Executive
OfficerSugarbud Craft Growers Corp.Phone: (604)
499-7847E-mail: johnk@sugarbud.caInvestor
Relations ContactChris
MoulsonChief Financial OfficerSugarbud
Craft Growers Corp.Tel: (778) 388-8700E-mail:
chrism@sugarbud.ca |
Websites: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 use of proceeds from
the Offering; the listing of the Warrants; and the business plan of
the Company, generally, including revenue creation and growth
plans. 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: currently contemplated expansion and development plans
may cease or otherwise change; production of cannabis may be lower
than expected, Sugarbud may not obtain the required approvals from
Health Canada, including with respect to an amended sales license;
demand for Sugarbud's products may be lower than anticipated;
results of production and sale activities; results of scientific
research; changes in prices and costs of inputs; demand for labour;
demand for products; failure of counter-parties to perform
contractual obligations; failure to maintain consumer brand
recognition and loyalty of customers; reliance on relationships
with wholesalers and retailers for distribution of products and
failure to maintain strategic business relationships; intense
competition, including from illicit sources; uncertainty and
continued evolution of markets; product liability litigation;
reliance on information technology; infringement on intellectual
property; failure to benefit from partnerships; sensitivity of
end-customers to increased sales taxes and economic conditions;
failure to comply with certain regulations; departure of key
management personnel or inability to attract and retain talent;
actions and initiatives of federal and provincial governments and
changes to government actions, initiatives and policies and the
execution and impact thereof; 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; risks
inherent in the agricultural business, such as insects, plant
diseases and similar agricultural risks which can have a
significant impact on the size and quality of the harvest of
cannabis crops; competition from other industry participants; and
other factors more fully described from time to time in the reports
and filings made by Sugarbud with securities regulatory
authorities. In addition, the Company cautions that current global
uncertainty with respect to the spread of the COVID-19 virus and
its effect on the broader global economy may have a significant
negative effect on the Company. While the precise impact of the
COVID-19 virus on the Company remain unknown, rapid spread of the
COVID-19 virus may have a material adverse effect on global
economic activity, and can result in volatility and disruption to
global supply chains, operations, mobility of people and the
financial markets, which could affect interest rates, credit
ratings, credit risk, inflation, business, financial conditions,
results of operations and other factors relevant to the Company.
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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