Auxly Cannabis Group Inc. has closed its financing pursuant to its final short form prospectus dated Feb. 1, 2021, which was filed with and accepted by the TSX Venture Exchange, and filed with and receipted by the securities commissions of each of the provinces of Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador, on Feb. 1, 2021, pursuant to the provisions of the applicable securities acts.
The TSX Venture Exchange has been advised that the offering closed on Feb. 8, 2021, for gross proceeds of $20,126,150 (which includes the exercise of the overallotment option as defined below).
Underwriters: ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corp. as co-lead underwriters and joint bookrunners, together with Mackie Research Capital Corp., Desjardins Securities Inc. and Raymond James Ltd.
Offering: 47.3 million units (Each unit consists of one common share of Auxly and one-half common share purchase warrant, where each whole warrant entitles the holder to acquire one additional share at a price of 46 cents per common share for a period of 36 months following closing, subject to adjustment in certain circumstances.)
Unit price: 37 cents
Underwriters' commissions: The underwriters received commissions equal to 6.0 per cent of the gross proceeds of the offering, including the overallotment, being $1,207,569.
Underwriters' warrants: The underwriters received 2,719,750 common share broker warrants, inclusive of the common share broker warrants issuable pursuant to the exercise of the overallotment option. Each broker warrant will entitle the holder thereof to purchase one common share at an exercise price equal to the offering price for a period of 36 months following the closing date.
Overallotment option: The underwriters were granted an option to purchase up to an additional 7,095,000 units at the offering price, for a period of up to 30 days from the closing of the offering. The overallotment option has been exercised in full.
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