TORONTO, April 22, 2019 /CNW/ - Canaccord Genuity Growth Corp. (NEO: CGGC.UN) ("CGGC" or the "Company") is pleased to announce that at its special meeting (the "Meeting") of shareholders of the Company ("Shareholders") held today, Shareholders have approved CGGC's proposed qualifying transaction (the "Transaction") pursuant to which Columbia Care LLC ("Columbia Care") will become a wholly-owned subsidiary of the Company.
Approximately 97.42% of the votes cast by holders of Class A restricted voting shares and Class B shares (together, the "Shares") were in favour of the Transaction and approximately 91.73% and 91.73% of the votes cast were in favour of the continuance of CGGC from Ontario to British Columbia and the Company's proposed long term incentive plan and certain one time Transaction-related equity based awards, in each case, as further described in CGGC's management information circular dated March 21, 2019.
CGGC is also pleased to announce that only 1,000 Class A Restricted Voting Shares were submitted for redemption with respect to the Transaction.
The Transaction is expected to close (the "Closing") on April 26, 2019, subject to the satisfaction or waiver of certain conditions as set out in the transaction agreement entered into between CGGC and Columbia Care dated November 21, 2018, as amended on February 20, 2019. In connection with the Closing, it is expected that trading of the Class A Restricted Voting Units (CGGC.UN) on the Neo Exchange Inc. (the "NEO Exchange") will be halted at close of business on April 25, 2019. Subject to the completion of the Transaction and final approval of the NEO Exchange, it is expected that the common shares and warrants to be issued pursuant to the Transaction will commence trading on the NEO Exchange on April 29, 2019 under the symbols "CCHW" and "CCHW.WT", respectively.
As part of the Transaction, the Company will be renamed "Columbia Care Inc." ("New Columbia Care") and the common shares of New Columbia Care will be consolidated on the basis of one post-consolidation common share of New Columbia Care (each a "Common Share") for three pre-consolidation shares. As a result, the Company's warrants (the "Warrants") will be adjusted pursuant to the terms of the warrant agency agreement so that following Closing each Warrant will be exercisable for one-third of one Common Share. The Warrants will be exercisable commencing 65 days following Closing with a holder having to exercise three Warrants for an aggregate exercise price of C$10.35 to acquire one Common Share.
A copy of the complete report of voting results will be made available on SEDAR at www.sedar.com.
About Canaccord Genuity Growth Corp.
Canaccord Genuity Growth Corp. is a newly organized special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purpose of effecting a qualifying transaction within a specified period of time.
About Columbia Care LLC
Columbia Care is one of the U.S.'s largest and most experienced cultivators, manufacturers and providers of medical cannabis products and services. It is licensed in certain regulated jurisdictions and has completed more than 750,000 sales transactions since its inception. Working in collaboration with globally renowned and innovative teaching hospitals and medical centers, Columbia Care is a patient-centered healthcare and wellness company setting the standard for compassion, professionalism, quality, caring and innovation for a rapidly expanding new industry. For more information on Columbia Care, please visit www.col-care.com.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects CGGC's current expectations regarding future events including the Transaction, expected timing of Closing and the trading of the common shares and warrants of the resulting issuer on the NEO Exchange. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond CGGC's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward- looking information. Such risks and uncertainties include, but are not limited to, timing and requirements applicable to completion of the Transaction, failure to complete the Transaction, inability to obtain requisite regulatory approvals, changes in general economic, business and political conditions, changes in applicable laws, compliance with extensive government regulation, as well as the factors discussed under "Risk Factors" in the Company's final prospectus dated March 21, 2019, a copy of which is available on SEDAR at www.sedar.com. CGGC undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The NEO Exchange does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE Canaccord Genuity Growth Corp.
For further information: Canaccord Genuity Growth Corp., Michael Shuh, Chairman and Chief Executive Officer, (416) 869-7376