Cannabis Growth Opportunity Corporation Completes $38.7 Million Initial Public Offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Jan. 26, 2018 /CNW/ - Cannabis Growth Opportunity Corporation (the "Corporation") is pleased to announce that it has completed its initial public offering (the "Offering") of 15,513,250 units of the Corporation (the "Units") for aggregate gross proceeds of approximately $38.7 million. Each Unit consists of one common share (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant") in the capital of the Corporation. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $2.50, subject to adjustment, on or prior to 5:00 p.m. (Toronto time) on the date that is the earlier of (i) January 26, 2020, and (ii) the date specified in any warrant acceleration notice delivered by the Corporation as described in greater detail in the Prospectus (as defined below). The Common Shares and Warrants will commence trading on Monday January 29, 2018 on the Canadian Securities Exchange under the symbols "CGOC" and "CGOC.WT", respectively.

The Corporation's investment objectives are to provide holders of Common Shares long-term total return through capital appreciation by investing in an actively managed portfolio ("Portfolio") of securities of public and private companies operating in, or that derive a significant portion of their revenue or earnings from, products or services related to the cannabis industry.

The Corporation will be invested primarily in publicly traded equity securities (the "Public Portfolio"), but may also invest up to 40% (determined at the time of investment) of the Corporation's total assets in private equity investments (the "Private Portfolio"). The Portfolio composition will vary over time depending on the Corporation's and the Investment Manager's (as defined herein) assessment of overall market conditions, opportunities and outlook including the allocation between the Public Portfolio and the Private Portfolio which will be determined by the Corporation. Generally, however, the Corporation will seek to invest approximately 60% of its total assets in the Public Portfolio and 40% of its total assets in the Private Portfolio.

CGOC Management Corp. is the manager and promoter of the Corporation. StoneCastle Investment Management Inc. will act as the Corporation's investment manager (the "Investment Manager") with respect to the Public Portfolio. The syndicate of agents for the offering is being led by Eight Capital and includes Canaccord Genuity Corp., Haywood Securities Inc., Mackie Research Capital Corporation, Beacon Securities Limited, PI Financial Corp. and Velocity Trade Capital Ltd. (collectively, the "Agents").  

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the Corporation in the United States, nor shall there be any sale of the securities of the Corporation in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

A final prospectus (the "Prospectus") containing important information relating to the Units being offered has been filed with the securities regulatory authorities in each of provinces and territories of Canada except Québec. Copies of the Prospectus may be obtained from any of the Agents. Investors should read the Prospectus before making an investment decision.

SOURCE Cannabis Growth Opportunity Corporation

Jamie Blundell, Chief Operating Officer, Cannabis Growth Opportunity Corporation, 647-946-2462 Ext. 1002, [email protected]