MJardin Spin-Off Raises $38 Million to Fund Canadian Cannabis Asset Purchases

GrowForce Announces Closing of C$38 Million Capital Raise

Equity Capital Raise Positions GrowForce to Execute M&A Consolidation Strategy

TORONTO, August 07, 2018–(BUSINESS WIRE)–GrowForce Holdings Inc. (“GrowForce” or the “Company”), a vertically integrated international cannabis platform, has successfully closed its previously announced equity capital raise (the “Offering”) resulting in aggregate gross proceeds of more than C$38 million.

Pursuant to the Offering, GrowForce issued 7,832,716 brokered subscription receipts exchangeable for common shares at a price of C$3.20 amounting to C$25,064,700. GrowForce also issued 4,115,521 non-brokered subscription receipts at the same price for gross proceeds of approximately C$13,169,700. The result is a cumulative raise of more than C$38 million.

Cormark Securities Inc. and Canaccord Genuity Corp., acted as co-lead agent, together with a syndicate of agents, including Haywood Securities Inc., KES 7 Capital Inc. and Mackie Research Capital Corporation, for the offering.

GrowForce will use the secured funding for capital expenditure related to cultivation expansion, including strategic acquisitions of high quality cannabis assets, and general working capital to execute the Company’s growth strategy.

The Offering was completed in connection with GrowForce’s previously announced proposed reverse take-over (the “Transaction”) of Platform Eight Capital Corp. (“Platform Eight”). The Transaction is expected to be completed during the third quarter of 2018. Pursuant to the Transaction, each common share of Platform Eight will be consolidated on the basis of approximately 12.23 common shares for each one (1) resulting issuer share and each common share of GrowForce will be exchanged for one (1) resulting issuer share and each convertible security of GrowForce will be exchanged for a comparable convertible security of the resulting issuer.

GrowForce was created and spun-off by Denver, Colorado-based MJardin, a highly-experienced cannabis management company, with a mission to become one of the premier vertically-integrated cannabis platforms globally outside of the U.S. GrowForce recently announced that it has entered into an exclusive cultivation, extraction and retail licensing agreement with MJardin, including exclusive rights to its cannabis management services and intellectual property portfolio in Canada and international markets.

With this capital raise, additional access to growth capital and key strategic partnerships in place, GrowForce is well-positioned to consolidate a fragmented cannabis industry in Canada and international markets.

James Lowe, EVP of Operations for GrowForce

Our growth strategy is focused on leveraging our significant experience successfully operating cultivation facilities across North America for more than nine years to position GrowForce as the leading consolidation platform in the legal cannabis industry.

GrowForce possesses an existing Canadian footprint of cannabis assets with planned cumulative capacity of approximately 60,000 kg of cannabis production per annum. Core to its growth strategy, GrowForce also plans to establish partnerships with various First Nations to build new facilities for large-scale cannabis cultivation, extraction, and retail. These partnerships will allow Indigenous Peoples of Canada to capitalize on economic opportunities in the cannabis space through the cultivation, distribution and retail sale of cannabis products.

Through its strategic partnership with Bridging Finance and the establishment of the Bridging Infrastructure Fund, GrowForce has exclusive access to non-dilutive growth capital for continued infrastructure investments and consolidation of strong operational cannabis assets. Bridging Finance has committed more than C$80 million to GrowForce projects thus far with an additional C$60 million of projects in the pipeline.

“There are currently more than 100 licensed producers across Canada, with the majority moving from construction of facilities to operations. Few of these licensed producers have the operating expertise to successfully execute this transition,” said Lowe. “GrowForce has significant access to capital with the operational expertise to be one of the top licensed producers as we execute our M&A consolidation strategy and unique retail distribution model.”

About GrowForce

GrowForce is a Canadian-based cannabis platform that operates within Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). GrowForce owns a majority interest in flagship cannabis facilities operated through Health Canada’s ACMPR, with strategic partnerships for turnkey operations, proprietary software and training, and project financing. GrowForce’s flagship facilities are intended to be operated by MJardin Group, North America’s largest turnkey operator of legal cannabis facilities, and financed by Bridging Finance Inc., Canada’s leading provider of private credit. For more information, please visit www.growforce.ca.

Original Press Release

Published by NCV Newswire
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