Mr. John Kondrosky reports
SUGARBUD ANNOUNCES RECEIPT OF DTC ELIGIBILITY AND THE CLOSE OF A NON-BROKERED PRIVATE PLACEMENT
Sugarbud Craft Growers Corp.'s OTCQB-listed common shares under the symbol SBUDF are now eligible for electronic clearing and settlement through the Depository Trust Company (DTC) in the United States.
"DTC eligibility supports our objectives to enhance liquidity while expanding our shareholder base and strengthening Sugarbud's presence in the U.S. capital markets," stated Sugarbud president and chief executive officer, John Kondrosky. "With Sugarbud shares now traded electronically, existing shareholders benefit from greater liquidity and speed of trade execution, and new investors will be less restricted and have a much easier time participating in our stock," concluded Mr. Kondrosky.
DTC is a subsidiary of the Depository Trust & Clearing Corp., a U.S. company that manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through the DTC are considered to be DTC eligible. This electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms by coming into compliance with their requirements. The company expects DTC eligibility to greatly simplify the process of trading and transferring the company's OTCQB-listed common shares (SBUDF) between brokerages in the United States.
Non-brokered private placement
The company also announces the completion of a non-brokered private placement for gross proceeds of $355,000, of which executive management and board members took up 74 per cent.
Pursuant to the private placement, Sugarbud issued 8,875,000 units at a price of four cents per unit. Each unit comprises one common share in the capital of Sugarbud and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of five cents for a period of two years from the date of issuance, subject to early expiry in the event that the five-day volume-weighted average trading price of the common shares (VWAP) equals or exceeds 12.5 cents.
The common shares and warrants are subject to a four-month hold period under applicable securities laws in Canada. The private placement remains subject to the final approval of the TSX Venture Exchange.
The private placement constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101) due to the participation of Sugarbud directors and officers, who are related parties of Sugarbud. In its consideration and approval of the private placement, the board of directors of Sugarbud determined that the private placement was exempt from the formal valuation and minority approval requirements of MI 61-101 on the basis that the fair market value of the private placement to related parties did not exceed 25 per cent of the market capitalization of Sugarbud, in accordance with sections 5.5 and 5.7 of MI 61-101.
Sugarbud will use the proceeds of the private placement for general corporate and working capital purposes.
Craft Growers Corp.
"Hand-crafted cannabis for a new era"
Sugarbud is a consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. The company's vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.
The Sugarbud Craft cannabis collection offers consumers "hand-crafted cannabis for a new era." The company is proudly Albertan and is proud to share Western Canada's long tradition of exceptional craft cannabis with the most discerning of enthusiasts. Sugarbud strives to define the intersection of product craftsmanship, quality and value for consumers in the Canadian craft cannabis space.
Sugarbud Craft cannabis products are currently available to adult recreational consumers in Alberta, British Columbia, Manitoba, Ontario, Quebec, Saskatchewan, Yukon Territory and nationally to registered medical patients through the CannMart website.
We seek Safe Harbor.
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