RIV Capital Inc (RIV)

[Wo]

Canopy Rivers Completes Previously Announced Bought Deal and Concurrent Private Placement for Total Gross Proceeds of Approximately $93.5 Million

https://finance.yahoo.com/news/canopy-rivers-completes-previously-announced-134833569.html?.tsrc=applewf

GlobeNewswire
February 27, 2019, 8:48 AM EST
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Feb. 27, 2019 (GLOBE NEWSWIRE) -- Canopy Rivers Inc. (RIV.V) (“Canopy Rivers” or the “Company”) is pleased to announce that it has closed its previously announced bought deal financing (the “Bought Deal”) of subordinated voting shares of the Company (the “Subordinated Voting Shares”) with a syndicate of underwriters (the “Underwriters”) led by CIBC Capital Markets (“CIBC”) and Eight Capital (together with CIBC, the “Joint Bookrunners”). The Bought Deal consisted of an aggregate of 13,225,000 Subordinated Voting Shares, which reflects the exercise in full of the Underwriters’ over-allotment option, at a price of $4.80 per Subordinated Voting Share (the “Issue Price”) for gross proceeds of approximately $63.5 million.

Concurrent with the Bought Deal, the Company completed the previously announced private placement (the “Private Placement” and together with the Bought Deal, the “Offering”) with Canopy Growth Corporation (“Canopy Growth”), the Company’s largest shareholder. Pursuant to the Private Placement, Canopy Growth purchased 6,250,000 Subordinated Voting Shares at the Issue Price for additional gross proceeds of $30.0 million. Prior to the Offering, Canopy Growth owned approximately 26.5% of the issued and outstanding shares of the Company on a non-diluted basis and, elected to subscribe under the Private Placement for more than its pro rata participation right. Following completion of the Offering, Canopy Growth’s ownership interest in the Company has increased to approximately 27.1% of the issued and outstanding shares of the Company on a non-diluted basis. The Subordinated Voting Shares issued pursuant to the Private Placement are subject to a statutory hold period under Canadian securities legislation expiring on June 28, 2019, and statutory restrictions on the distribution of shares from the holdings of a control person.