Supreme Cannabis Announces $22.5 Million Bought Deal Financing

Share:

TORONTO, Feb. 16, 2021 (GLOBE NEWSWIRE) -- The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is pleased to announce that it has entered into an agreement with BMO Capital Markets, on behalf of a syndicate of underwriters, under which the underwriters have agreed to buy on bought deal basis 72,600,000 units (the “Units”), at a price of $0.31 per Unit for gross proceeds of approximately $22.5 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 $0.40 per Warrant Share, subject to adjustment in certain events.

The Company has granted the underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the 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 offering is expected to close on or about February 19, 2021 and is subject to the Company receiving all necessary regulatory approvals.

The closing of the Offering is expected to occur on or about February 19, 2021, and is subject to completion of formal documentation and receipt of all regulatory approvals, including the approval of the Toronto Stock Exchange. The net proceeds of 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 (the “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”).

The Prospectus Supplement will be filed with the securities commissions or similar securities regulatory authorities in each of the provinces of Canada, excluding Quebec. The Prospectus Supplement and the Base Shelf Prospectus contain important detailed information about the Company and the proposed Offering. Prospective investors should read the Prospectus Supplement, the Base Shelf Prospectus and the other documents the Company has filed before making an investment decision. Copies of the Prospectus 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.