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CannaRoyalty Corp
Symbol C : CRZ
Shares Issued 46,859,329
Close 2018-03-15 C$ 4.35
Recent Sedar Documents

CannaRoyalty arranges $15-million bought deal offering

2018-03-15 16:23 ET - News Release

Mr. Marc Lustig reports

CANNAROYALTY CORP. ANNOUNCES $15 MILLION BOUGHT DEAL FINANCING

CannaRoyalty Corp. has entered into an agreement with a syndicate of underwriters, led by Canaccord Genuity Corp., pursuant to which the underwriters will purchase, on a bought deal basis, an aggregate of 3.75 million units of the company at a price of $4 per unit for aggregate gross proceeds of $15.0-million.

Each unit will consist of one common share and one-half of one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share of the company for a period of three years following the closing date of the offering at an exercise price of $5.50 per common share, subject to adjustment in certain events. In the event that the volume-weighted average trading price of the common shares exceeds $8 for 15 trading days following the closing date of the offering, the company shall be entitled to accelerate the exercise period of the warrants to a period ending not fewer than 21 days from the date written notice of such acceleration trigger is provided to warrantholders.

The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 562,500 units at the offering price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the offering. The underwriters may elect to exercise the overallotment option to acquire additional units, common shares and/or warrants. If this option is exercised in full, an additional $2.25-million in gross proceeds will be raised pursuant to the offering, and the aggregate gross proceeds of the offering will be $17.25-million.

"Two thousand eighteen is an exciting year for CannaRoyalty shareholders with California already operating under an adult-use recreational cannabis framework and Canada poised to make the transition later this year," said Marc Lustig, chief executive officer of CannaRoyalty. "The offering will enable us to continue to build on our leading platform of brands and supporting distribution and infrastructure assets in California through strategic acquisitions, while driving penetration for our existing CR Brands product portfolio in the state. Recent announcements with Aurora Cannabis Inc., National Access Cannabis Corp. and 180 Smoke indicate that there is significant interest in bringing our products to Canada, and the offering will enable us to continue to explore these opportunities in our home market through 2018."

The units will be offered by way of a short-form prospectus to be filed in all provinces of Canada (except Quebec), in the United States on a private placement basis pursuant to an exemption from the requirements of the U.S. Securities Act of 1933, as amended, and in compliance with applicable U.S. federal securities laws and any blue-sky laws or regulations of any state of the United States, and outside of Canada and the United States on a private placement or equivalent basis. The company intends to use the net proceeds from the offering to make strategic acquisitions, to further expand its existing operations, and for general corporate and working capital purposes.

The offering is expected to close on or about April 4, 2018, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including any approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.

About CannaRoyalty Corp.

CannaRoyalty is an active investor and operator in the legal cannabis industry. Its focus is building and supporting a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Its management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings through royalty agreements, equity interests, secured convertible debt, licensing agreements and its own branded portfolio.

We seek Safe Harbor.

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