Decibel Closes Previously Announced Offering of Units for Total Gross Proceeds of Approximately $15 Million, including Full Exercise of Over-Allotment Option
CALGARY, AB, Sept. 16, 2021 /CNW/ – Decibel Cannabis Company Inc. (“Decibel” or the “Company”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce the closing of its previously announced bought deal prospectus offering (the “Offering”) of units of the Company (“Units”).
Pursuant to the Offering, the Company issued 51,750,000 Units at a price of $0.29 per Unit (the “Issue Price”) for aggregate gross proceeds of $15,007,500, which includes the full exercise of the over-allotment option granted to the Underwriters (as defined below). The Offering was conducted by Eight Capital, Haywood Securities Inc. and Raymond James Ltd, as co-lead underwriters and joint bookrunners (the “Underwriters”). Each Unit is comprised of one common share in the capital of the Company (a “Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Share at an exercise price of $0.40 for a period of 36 months following the closing date of the Offering. It is anticipated that the Warrants will be listed and posted for trading on the TSX Venture Exchange (“TSXV”) under the symbol DB.WT.A at the open of markets on September 17, 2021.
As consideration for their services, the Underwriters received a cash commission equal to $900,450 and, as additional consideration, the Company issued a total of 3,105,000 broker warrants to the Underwriters. Each broker warrant is exercisable into one Share at the Issue Price for a period of 24 months following the closing of the Offering.
For more details on the Offering please see the final short form prospectus in respect of the Offering, which is available on the Company’s profile at www.sedar.com.
Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three operating production houses along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation, processing and distribution space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in seven provinces across Canada. The Thunderchild Cultivation Facility, is a licensed and operating 80,000 square foot indoor cultivation facility in Battleford, SK. The Plant, Decibel’s extraction, processing and manufacturing facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, Blendcraft, and General Admission, into new and innovative product formats like concentrates, vapes, edibles and beyond.
Neither 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 release.
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. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
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