Sugarbud Craft Growers Corp (SUGR)

[nowwhat2]

Perhaps some dd req.....Mkt cap reportedly 25 mil






Credits to https://ceo.ca/sugr?5318d1a751bc
NorthernLight786 As per prospectus- As more fully described in the below table, the Corporation intends to use the net proceeds from the Offering
for additional processing and production equipment purchases, facility upgrades, further new product
development, working capital and general corporate purposes, including the national launch of the
Corporation's expanded portfolio of Cannabis 2.0 products. While the Corporation currently intends to use
the net proceeds from the Offering for the purposes set out herein, the ultimate allocation of such proceeds
and the timing of their expenditure will depend upon the prevailing business opportunities and conditions
and unforeseen events which have been amplified since the beginning of the COVID-19 pandemic. The
Corporation will have discretion to use the net proceeds differently than as described herein, if the
Corporation believes it is in its best interests to do so. The amounts and timing of the Corporation's actual
expenditures depend on numerous factors. Pending the use of the proceeds described herein, the
Corporation may hold or invest all or a portion of the proceeds of the Offering in interest bearing bank
accounts and the funds may be added to the working capital of the Corporation. There may be
circumstances where, for sound business reasons, a reallocation of funds may be necessary. See "Risk
Factors".
Principal Purposes(1)
Approximate Use of
Net Proceeds
Cultivation capacity expansion(2) $150,000.00
Processing and production equipment purchases and facility enhancements(3) $450,000.00
Cannabis 2.0 capacity(4) $230,000.00
New product development(5) $350,000.00
Sales, marketing and brand development expenses for 2021(6) $750,000.00
Other G&A expenses, working capital and other general corporate purposes(7) $1,590,186.00
Total $3,520,186.00
Notes:
(1) The principal purposes are described in further detail in “Description of the Business – Production and Services –
Cultivation” of the AIF, as supplemented and updated in the “Operating and Financial Update” section of the Interim
MD&A. The amounts included in this table are approximate estimates based on information available to the
Corporation as of the date hereof and include, where applicable, early stage quotes from third parties for the
anticipated initiatives. Although the Corporation believes its budgeted allocations are reasonable, the actual
amounts expended by the Corporation on such initiatives and the components thereof may be different than what
has been provided herein. The assumptions underlying these estimates include, the cost of labour and services,
the ability to engage the required service providers on a timely basis and limited cost and time overruns. These
assumptions are subject to the same risks applicable to the Corporation, see “Risk Factors”.
(2) Capital expenditures related to acquiring and installing capital assets at Phase 1a of the Facility which will be
incurred by the end of the second quarter of 2021.
(3) In order to increase operational efficiency, the Corporation plans to implement automation of certain manufacturing
processes, purchase processing equipment and make facility enhancements to the Facility, all of which are
anticipated to be put in place by the end of the second quarter of 2021.




@NorthernLight786 (4) Associated with the packaging and labeling equipment necessary to complete the final production of Cannabis 2.0
products in 2021.
(5) Product development initiatives include expanding the Corporation’s Craft Cannabis Collection, including dried
flower offerings, pre-rolls, vape cartridges, flower rosin and other concentrate and edibles offerings.
(6) The main components of sales, marketing and brand development initiatives are digital paid media and in-store
trade marketing. The other components include: search engine optimization, consumer knowledge sessions, social
media management and outreach, budtender education sessions, email campaigns and retail data access fees.
(7) Includes salary and benefits, professional fees including legal, auditing and tax, costs associated with public listing,
regulatory, investor relations and public relations, business and corporate development, travel expenses, office
rent, operating and information technology costs, director compensation and director's and officer's insurance
premiums. The Corporation expects that this amount will be used to fund these expenses for a period of
approximately 12 to 18 months. The Corporation expects to incur additional expenses of this nature over this period
which is anticipated to be funded from existing working capital and anticipated revenues from early pre-commercial
product sales.