COLUMBUS, Nov. 5, 2018 /CNW/ - Green Growth Brands ("GGB") is pleased to announce, in advance of its previously announced business combination transaction (the "Transaction") with Xanthic Biopharma Inc., that it has closed an additional private placement investment of approximately C$30.5 million with a strategic partner, at a post-Transaction consolidation price of C$2.00 per share. The subscriber further intends to exercise, prior to completion of the Transaction, approximately C$24.5 million of common share purchase warrants of GGB issued under the private placement, with each exercisable on the same consolidation price of C$2.00 per share. The subscriber will be required to make payment of the C$24.5 million exercise price within 30 days. Assuming exercise of and full payment for the warrants, the total funds raised by GGB following the announcement of the Transaction will exceed C$140 million.
This private placement follows GGB's initial private placement of convertible debentures, which was upsized from its original target of C$55 million to over C$86 million, due to significant demand, in particular from a number of strategic investors. The Transaction is targeted for completion the week of November 5, 2018, with trading to resume on the Canadian Securities Exchange under the ticker symbol "GGB" shortly thereafter.
"We've seen a significant amount of interest in the company, not only from consumers and industry partners, but from the investment community at large," said Green Growth Brands CEO Peter Horvath. "Expanding our relationships with strategic investors is a priority for us, and this recent deal fits the bill perfectly."
"We're very focused on quickly expanding our footprint across North America, and this funding will allow us to acquire additional cannabis licenses and grow facilities," continued Mr. Horvath. "We're also very excited about our new CBD-infused body care collection, which has been very successful in our test markets. Our management team has exceptionally strong experience in the personal care and beauty industry, so we're confident that we'll quickly gain a leadership position."
SOURCE Green Growth Brands
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