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TORONTO, Jan. 14, 2019 /CNW/ - Canaccord Genuity Growth Corp. ("CGGC") (NEO: CGGC.UN) announced today that Canaccord Genuity Growth Inc. ("CGG"), a wholly-owned subsidiary of CGGC, has obtained approval from the holders of subscription receipts (the "Subscription Receipts") for an amendment of the terms of the subscription receipt agreement (the "Subscription Receipt Agreement") extending the Escrow Release Deadline (as such expression is defined in the Subscription Receipt Agreement).
On November 21, 2018, CGGC announced that it had entered into a definitive agreement with respect to a business combination (the "Business Combination") with Columbia Care LLC, a leading medical cannabis company in the United States (the "Business Combination Agreement"). In connection with the proposed Business Combination, CGG issued Subscription Receipts in consideration of US$85.1 million pursuant to a brokered institutional private placement. CGG obtained the approval of the holders of the Subscription Receipts for an extension of the Escrow Release Deadline, which is the last date upon which the escrow release conditions may be satisfied before the Subscription Receipts are automatically terminated and the purchase price (and a pro rata share of all amounts earned thereon) is returned to investors, from March 1, 2019 to March 31, 2019 or, if Columbia Care and CGGC agree to extend the outside date under the Business Combination Agreement, to such date as is agreed to by Columbia Care and CGGC but, in any event, not later than April 30, 2019.
Holders of Subscription Receipts will become holders of common shares of CGGC to be renamed "Columbia Care Inc." upon completion of the Business Combination if the escrow release conditions are satisfied prior to the Escrow Release Deadline. The Business Combination remains subject to the satisfaction or waiver of certain customary conditions, including, among other things, receipt of all required third party consents, regulatory approvals (including that of the NEO Exchange) and the approval of shareholders of CGGC and holders of ownership interests in Columbia Care.
"Pursuing the merger with Canaccord Genuity Growth Corporation is among the most important corporate decisions since Columbia Care's founding," said Nicholas Vita, chief executive officer of Columbia Care. "It will enable us to access the public equity markets opportunistically to accelerate growth, enhance the efficiency of our operations and, at the same time, showcase our governance, strategy and enhanced transparency for regulators, stakeholders and partners. Our steady stream of accomplishments since the announcement of our merger with CGGC, including our expansion into Europe, demonstrates our relentless execution. As we prepare to navigate regulatory review and approval by Canadian authorities and move forward with our strategy, our enthusiasm remains rooted in the opportunities that lay ahead."
CGGC has also been provided with a business update from Columbia Care with respect to recent developments at Columbia Care since announcing its intent to execute the Business Combination Agreement. Columbia Care continues to actively pursue the growth and development of its operational footprint in selected jurisdictions, including:
- Approval of its licensure application by Malta's economic development agency. This development is expected to provide Columbia Care with the ability to import into, export from, manufacture, cultivate and distribute in the European Union subject to local laws and regulations, the first of its kind for a US-based cannabis company.
- The opening of two additional medical cannabis dispensaries in Pennsylvania, expanding accessibility and availability for patients in that state. All three of Columbia Care's Pennsylvania locations were serving qualifying patients as of mid-December.
- Columbia Care's selection by the New Jersey Department of Health to apply for a permit to cultivate, process and dispense cannabinoid-based products to qualifying patients at its planned Columbia Care New Jersey Alternative Treatment Centre in Vineland, New Jersey, upon completion of final regulatory steps. Columbia Care was one of only six alternative treatment centers to be chosen by the State, and provides Columbia Care the opportunity to focus on its commitment of delivering high quality and consistent cannabinoid-based medicines to its patients.
- GMP Certification of Columbia Care's Florida medical cannabis manufacturing facility, located in Arcadia, Florida, in accordance with the Florida Department of Health's requirements pertaining to the processing, extraction and production of medical cannabis. Columbia Care Florida plans to produce Columbia Care's portfolio of proprietary, pharmaceutical-quality products including sublingual tinctures, tablets, vaporization, and other application formats.
- Selection by the Virginia Board of Pharmacy as one of only five licensees to produce and dispense cannabinoid-based medicines in Virginia. The conditional approval gives Columbia Care the ability to cultivate, produce and dispense CBD and THC oils to qualifying patients throughout the State.
In addition to the expansion of its operational footprint, Columbia Care further strengthened its cannabis research and IP development program, with the announcement of two key research initiatives:
- Columbia Care's partnership with The Center for Discovery, based in New York State, will collaborate on the examination of cannabis-derived medicines for the treatment of epilepsy. The partnership will use two of Columbia Care's proprietary tablet formulations to study the efficacy of dose-metered CBD tablets in qualifying patients.
- The receipt of an R21 research grant by Columbia University Department of Psychiatry and Columbia Care to study the impact of medical cannabis on opioid use. The study will expand upon pilot data collected by Columbia Care, which examined opioid use in neuropathy patients across a wide range of indications who were administered Columbia Care's dose-metered cannabinoid medicines.
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 on the NEO Exchange within a specified period of time.
About Columbia Care LLC
Columbia Care is one of the U.S.'s largest and most experienced manufacturers and providers of medical cannabis products and services. It is licensed in highly selective and regulated jurisdictions and has completed more than 750,000 successful patient interactions since its inception. Working in collaboration with globally renowned and innovative teaching hospitals and medical centers, Columbia Care is a patient-centered healthcare 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 proposed Business Combination. 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 Business Combination, failure to complete the Business Combination, inability to obtain requisite regulatory and shareholder 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 final prospectus of CGGC dated September 13, 2018, 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; Columbia Care LLC, Josephine Belluardo, Ph.D., LifeSci Public Relations, (646) 751-4361, [email protected]