Supreme Cannabis Announces Overnight Marketed Public Offering
TORONTO, Jan. 25, 2021 (GLOBE NEWSWIRE) — The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is pleased to announce that it has launched an overnight marketed public offering of units of the Company (the “Units”) at a price of $0.19 per Unit for gross proceeds of approximately $20 million (the “Offering”). Each unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of $0.23 per Warrant Share, subject to adjustment in certain events.
The offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing pursuant to the terms of an underwriting agreement to be entered into between the Company and BMO Capital Markets, as lead underwriter and sole bookrunner, and a syndicate of underwriters (collectively, the “Underwriters”). There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. The Offering is expected to close on or about January 29, 2021, and will be subject to market and other customary conditions, including approval of the Toronto Stock Exchange.
In addition, the Company intends to grant the Underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the proposed Offering on the same terms and conditions (the “Over-Allotment Option”). The Over-Allotment Option may be exercised in whole or in part to purchase Common Shares, Warrants or Units as determined by the Underwriters.
The net proceeds from the Offering will be used to fund growth initiatives, as a reserve for strategic opportunities, and for working capital and general corporate purposes.
The Units will be offered in each of the provinces of Canada, excluding Quebec, pursuant to a prospectus supplement to the Company’s short form base shelf prospectus dated April 22, 2020 (the “Base Shelf Prospectus”). The Units will not be offered or sold in the United States or to U.S. persons except pursuant to Rule 144A or in such other manner as to not require registration under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”).
A preliminary prospectus supplement (the “Preliminary Supplement”) will be filed today with the securities commissions or similar securities regulatory authorities in each of the provinces of Canada, excluding Quebec, and the Company intends to file a final prospectus supplement to its Base Shelf Prospectus on or about January 26, 2021. The Preliminary Supplement and the Base Shelf Prospectus contain important detailed information about the Company and the proposed Offering. Prospective investors should read the Preliminary Supplement, the Base Shelf Prospectus and the other documents the Company has filed before making an investment decision. Copies of the Preliminary Supplement, following filing thereof, and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been, and will not be registered under the U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
About Supreme Cannabis
The Supreme Cannabis Company, Inc., (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), is a global diversified portfolio of distinct cannabis companies, products and brands. Since 2014, the Company has emerged as one of the world’s most premium producers of recreational, wholesale and medical cannabis products.
Supreme Cannabis’ portfolio of brands caters to diverse consumer and patient experiences, with brands and products that address recreational, wellness, medical and new consumer preferences. The Company’s recreational brand portfolio includes, 7ACRES, 7ACRES Craft Collective, Blissco, sugarleaf, and Hiway. Supreme Cannabis addresses national and international medical cannabis opportunities through its premium Truverra brand.
Supreme Cannabis’ brands are backed by a focused suite of world-class operating assets that serve key functions in the value chain, including, scaled cultivation, value-add processing, automated packaging and product testing and R&D. Follow the Company on Instagram, Twitter, Facebook, LinkedIn and YouTube.
We simply grow better.
Original press release
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