CALGARY, Alberta, Dec. 27, 2019 (GLOBE NEWSWIRE) — 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.
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.
Chief Executive Officer
Sugarbud Craft Growers Corp.
Phone: (604) 499-7847
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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