Sugarbud Announces Completion of Rights Offering
27 December 2019 - 11:00PM
Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is
pleased to announce the completion of its previously announced
rights offering (the "Rights Offering") to holders ("Shareholders")
of common shares of Sugarbud ("Common Shares"). Under the Rights
Offering, Shareholders subscribed for and purchased an aggregate of
16,272,075 units (each, a "Unit"), at a price of $0.055 per Unit,
resulting in gross proceeds to Sugarbud of $894,964. Each Unit
consists of one Common Share and one Common Share purchase warrant
(each, a "Warrant"). The Warrants are governed by a warrant
indenture agreement between Sugarbud and Computershare Trust
Company of Canada (the “Indenture”). In accordance with, and
subject to the terms and conditions of, the Indenture, each Warrant
entitles the holder thereof to purchase one Common Share at a price
of $0.10 until December 20, 2021, subject to early expiry in the
event that the 5-day volume weighted average trading price of the
Common Shares equals or exceeds $0.125.
Following the completion of the Rights Offering,
Sugarbud has 393,668,532 Common Shares outstanding.
Sugarbud will use the proceeds of the Rights
Offering to further develop its high capacity state-of-the-art
vertical cannabis cultivation facility in Stavely, Alberta and for
general working capital purposes.
“We are grateful for the support shown by our
shareholders during the rights offering and look forward to a very
exciting and productive 2020 as we begin to rapidly scale up our
commercial efforts,” stated Sugarbud CEO, John Kondrosky. “We
continue to execute well against a very disciplined capital
spending and commercial plan that remains focused on maximizing
value through the near-term expansion of cultivation capacity and
production of exceptional dry cannabis flower products which we
expect will begin to generate sustainable positive cash flow by
late Q3 2020,” Mr. Kondrosky added.
Sugarbud also announces that, pursuant to the
terms and conditions of its stock option plan, it has cancelled a
total of 6,750,000 Options granted to certain directors of
Sugarbud. The cancelled Options were voluntarily surrendered by the
holders thereof for no consideration. The exercise prices of the
cancelled Options ranged from $0.10875 to $0.185 per Common
Share.
About Sugarbud
Sugarbud is a federally licensed Alberta-based
publicly traded cannabis company focused on the cultivation and
production of high-quality premium cannabis, and product leadership
through the development, production and distribution of exceptional
value-added cannabis products in Canada.
http://www.sugarbud.ca/
John Kondrosky Chief Executive Officer Sugarbud
Craft Growers Corp. Phone: (604) 499-7847 E-mail:
johnk@sugarbud.ca |
Investor Relations Contact Gary Perkins,
President Tekkfund Capital Corp. Tel: (416) 882-0020
E-mail: garyperkins@rogers.com
Website:
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 Rights Offering. 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, the receipt of required regulatory and TSXV approvals,
and the timing thereof, and other factors more fully described from
time to time in the reports and filings made by Sugarbud with
securities regulatory authorities. 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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