Green Thumb Industries Announces CAD $65 Million Bought Deal Financing
Press Release | 09/25/2018
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, Sept. 25, 2018 (GLOBE NEWSWIRE) -- Green Thumb Industries Inc. (“GTI” or the “Company”) (CSE: GTII) (OTCQX: GTBIF), a national cannabis consumer packaged goods company and owner-operator of the high growth national retail chain RISE™ dispensaries, today announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (the "Lead Underwriter" and, collectively with the syndicate, the "Underwriters"), pursuant to which the Underwriters will purchase, on a bought deal basis in accordance with the filing of a short form prospectus, an aggregate of 3,250,000 subordinate voting shares (the “Offered Securities") of the Company at a price of CAD $20.00 per Offered Security (the “Offering Price") for aggregate gross proceeds of CAD $65 million (the “Offering").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 487,500 Offered Securities 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 of the Offering.
The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The Company intends to use the net proceeds from the Offering for business development, including wholesale capacity, strategic initiatives and general corporate purposes.
"GTI is capitalizing on market opportunities and executing on its strategic growth plan," said GTI Founder & Chief Executive Officer Ben Kovler. "We are excited about this equity offering and appreciate the support of our investors. GTI will continue to take a highly disciplined approach to capital allocation and financial management to create value for its shareholders."
The Offering is expected to close on or about October 17, 2018, 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 (the "CSE") and the applicable securities regulatory authorities.
