Auxly Cannabis Group Inc (CVE:XLY) recently announced a private placement of units for $15 million. The units are being sold at $0.315 per unit, and the proceeds will be used to fund the acquisition of an additional interest in two Alberta cannabis companies. Auxly Cannabis is one of Canada’s premier cannabis companies and a member of the Auxly Group of Companies. Auxly Cannabis is focused on the production and sale of premium cannabis products, both domestically and internationally. The Company operates in the legal cannabis industry in Canada.
Auxly Cannabis Group Inc. (OTC: AXLY) (CSE: AXY) (CNSX: AXY) (the “Company”) today announced that it has closed on the sale of 3,150,000 Units (“Units”), representing approximately 10% of the issued and outstanding Units of the Company, to a third party at a price of $0.315 per Unit for aggregate gross proceeds of $4,250,000 (the “Offering”). The Offering was conducted pursuant to a prospectus exemption pursuant to the Canadian Securities Exchange (“CSE”) policies and pursuant to the policies of the British Columbia Securities Commission.
Auxly announces $15.0 million public offering
TORONTO, June 20-June 21 (GLOBE NEWSWIRE) – Auxly Cannabis Group Inc. (Auxly or the Company) (TSX: XLY) (OTCQX: CBWTF) is pleased to announce that it has entered into an agreement whereby ATB Capital Markets Inc. (ATB), as sole bookrunner, and Cantor Fitzgerald Canada Corporation, as lead underwriter of the Offering, together with a syndicate of underwriters (collectively, the Underwriters), will acquire 47,620,000 units of the Corporation (the Units) at a purchase price per Unit of $0.315 (the Issue Price) for gross proceeds of $15,000,300 (the Offering). A.G.P./Alliance Global Partners is acting as the Company’s sole U.S. sub-agent and financial advisor in connection with the U.S. Offer. Each Unit consists of one common share of the Corporation (each common share) and one-half of one warrant to purchase common shares of the Corporation (each whole warrant, a Warrant). Each warrant entitles the holder to purchase one common share at an exercise price of $0.38 at any time during the 36 months following the closing of the offering. The Company has granted the Underwriters an option (the Underwriters’ Option) to increase the size of the Offering by an aggregate number of Units equal to 15% of the total number of Units issued under the Offering, which Underwriters’ Option may be exercised at any time and from time to time within 30 days of the closing of the Offering. The Company intends to use the net proceeds to continue its strategic growth initiatives, including the development, marketing and expansion of its product portfolio, and for general corporate purposes. The closing of the Offering is expected to occur during the week of June 14, 2021 (the Closing), or at such later or earlier date as the Underwriters and the Company may agree, and is subject to the Company obtaining all necessary regulatory approvals, including the approval of the required securities regulatory authorities. The Shares will be offered by way of a prospectus supplement (the Prospectus Supplement) to the Company’s short form prospectus dated 18 January 2009. The Shares will be offered by means of a base prospectus (the Base Prospectus) to be filed in such provinces of Canada as the Company and the Underwriters may designate (other than Quebec) in accordance with National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Private Placements. The Shares may also be offered in the United States on the basis of a private placement pursuant to an exemption from registration requirements under applicable US law. The prospectus supplement and the base prospectus in condensed form will contain important detailed information on the proposal. Copies of the prospectus supplement, when filed, and the base prospectus will be available on the Company’s SEDAR profile at www.sedar.com. Copies of the prospectus supplement and base prospectus may also be obtained in Canada by contacting ATB Capital Markets Inc. at 585 8th Avenue SW, Suite 410, Calgary, AB T2P 1G1 or by emailing [email protected] No securities regulatory authority has approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of any such jurisdiction. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of registration or an applicable exemption from U.S. registration requirements and applicable state securities laws. About Auxly Cannabis Group Inc. (TSX:XLY) Auxly is a leading Canadian company dedicated to the production of innovative, effective and high-quality cannabis products for the recreational and adult-use markets. Auxly’s experienced team of industry leaders and entrepreneurial visionaries provided a diverse range of cannabis commodities, strong clinical, scientific and operational capabilities, and a leading research and development infrastructure to build strong products and brands in a growing global market. For more information, visit www.auxly.com and follow us on Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/. Original press release Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. New Cannabis Ventures is committed to gathering quality content and information about leading cannabis companies to help our readers filter through the noise and stay informed about the most important news in the field. Do you have sensitive information? Please contact us.