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Green Growth Brands Inc. closed its previously announced bought deal short form prospectus offering of units for C$50,225,000. “We are pleased to announce the completion of our first equity raise as a public company since our October 2018 RTO,” GGB CEO Peter Horvath said, in a statement. “The proceeds of this bought deal financing, combined with the recently announced $102.7 million backstop commitment, which was led by the Schottenstein family, support continued execution against our strategy to deliver industry-leading consumer experiences and product innovation in cannabis and CBD.”

Under the offering, GGB sold 20,500,000 units for C$2.45 per unit. Each unit is comprised of one common share and one half of one common share purchase warrant. A warrant entitles holders acquire one common share for C$3.50 per underlying common share, subject to adjustment in certain events, for a period of three years from issuance.

The warrants have been approved for listing on the Canadian Securities Exchange under the symbol GGB.WT.

GGB expects to use the offering proceeds to fund, in part:

  • The balance of the cash purchase price payable in connection with its acquisition of Nevada Organic Remedies LLC.
  • The cash portion of the purchase price payable by GBB to complete its acquisition of Henderson Organic Remedies LLC.
  • The deferred cash compensation and certain other fees payable in connection with the company’s acquisition of Spring Oaks Greenhouses Inc.
  • Ongoing capital expenditures and general corporate purposes.