Cannabis Growth Opportunity Corporation Seeks C$75 Million in IPO

Cannabis Growth Opportunity Corporation Announces Filing of Preliminary Prospectus

TORONTO, Nov. 27, 2017 /CNW/ – CGOC Management Corp. (“CGOC”) is pleased to announce that Cannabis Growth Opportunity Corporation (the “Corporation”) has filed a preliminary prospectus in respect of an initial public offering (the “Offering”) of units (the “Units”). Each Unit consists of one common share (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”) in the capital of the Corporation. The Units issued pursuant to the Offering will separate into Common Shares and Warrants immediately after closing of the Offering. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $2.50, subject to adjustment, at any time before 5:00 p.m. (Toronto time) on July 1, 2018 (the “Expiry Time”). Warrants not exercised by the Expiry Time will be void and of no value.

The Corporation’s investment objectives are to provide holders of Common Shares long-term total return through capital appreciation by investing in an actively managed portfolio (“Portfolio”) of securities of public and private companies operating in, or that derive a significant portion of their revenue or earnings from, products or services related to the cannabis industry.

The Corporation will be invested primarily in publicly traded equity securities (the “Public Portfolio”), but may also invest up to 40% (determined at the time of investment) of the Corporation’s total assets in private equity investments (the “Private Portfolio”). The Portfolio composition will vary over time depending on the Corporation’s and the Investment Manager’s (as defined herein) assessment of overall market conditions, opportunities and outlook including the allocation between the Public Portfolio and the Private Portfolio which will be determined by the Corporation. Generally, however, the Corporation will seek to invest approximately 60% of its total assets in the Public Portfolio and 40% of its total assets in the Private Portfolio.

Prospective purchasers investing in the Corporation have the option of paying for Units in cash or by exchanging securities of issuers listed in the preliminary prospectus. Prospective purchasers under the exchange option are required to deposit their exchange eligible securities through CDS Clearing and Depository Services Inc. in the manner described in the preliminary prospectus. The Corporation will issue a press release announcing the timing and pricing for the exchange option.

CGOC will act as the manager and promoter of the Corporation. StoneCastle Investment Management Inc. will act as the Corporation’s investment manager (the “Investment Manager”) with respect to the Public Portfolio. Eight Capital will act as agent for the Offering.

Original press release

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