PRESS RELEASE
Sugarbud Announces Completion of Rights Offering
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Published: Dec 27, 2019 7:00 a.m. ET
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CALGARY, Dec. 27, 2019 (Canada NewsWire via COMTEX) -- Sugarbud Craft Growers Corp. (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.
