Green Growth Brands Announces Bought Deal Public Offering of Units
COLUMBUS, OH, July 23, 2019 /CNW/ – Green Growth Brands Inc. (CSE:GGB) (OTCQB:GGBXF) (the “Company” or “GGB”) announced today that it has entered into an agreement with a group of investment dealers, led by Canaccord Genuity Corp. (the “Underwriters”), pursuant to which the Underwriters will purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 20,500,000 units (the “Units”) of the Company at a price of C$2.45 per Unit (the “Offering Price”) for aggregate gross proceeds of C$50,225,000 (the “Offering”).
Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company (the “Underlying Common Shares”) at a price of C$3.50 per Underlying Common Share, subject to adjustment in certain events (the “Exercise Price”), for a period of 3 years following the Closing Date (as hereinafter defined). The Company intends to apply to list the Warrants on the Canadian Securities Exchange.
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 3,075,000 Units at the Offering Price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the Closing Date. If this option is exercised in full, an additional C$7,533,750 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$57,758,750.
The Units will be offered by way of a short form prospectus to be filed in the provinces of British Columbia, Alberta, Ontario and Nova Scotia, as agreed by the Company and the Underwriters (the “Prospectus”). The Company intends to use the net proceeds from the Offering, in part, (i) to finance the cash purchase price payable by the Company to complete its acquisition of Nevada Organic Remedies, (ii) to finance the cash purchase price payable by the Company to complete its acquisition of Henderson Organic Remedies, and (iii) to finance the cash purchase price payable by the Company to complete its acquisition of Spring Oaks, with (iv) the balance, if any for Company’s ongoing capital expenditures and general corporate purposes.
Closing of the Offering is expected to occur on or about August 21, 2019 (the “Closing Date”) and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.
The securities being offered have not been, nor will they be, registered under the United States Securities Act and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
About Green Growth Brands Inc.
Green Growth Brands creates remarkable experiences in cannabis and CBD. Led by CEO Peter Horvath and a leadership team of consumer-focused retail experts, the company’s brands include CAMP, Seventh Sense Botanical Therapy, The+Source, Green Lily, and Meri + Jayne. The Company also has a licensing agreement with the Greg Norman™ Brand to develop a line of CBD-infused personal care products designed for active wellness. Already driving the strongest sales per square feet in the cannabis industry, GGB is expanding its cannabis operations throughout the U.S., its CBD presence at ShopSeventhSense.com, in malls across the country and at DSW shoe stores—and that’s just the beginning. Learn more about our vision at GreenGrowthBrands.com.