Sugarbud Generates $894,964 In Gross Proceeds From Rights Offering

Sugarbud Craft Growers Corp. SUGR announced Friday that it has finalized its previously announced rights offering to holders of the company’s common shares.

Shareholders acquired a total of 16.27 million units in the offering at a price of $0.055 per unit, generating gross proceeds to the company of $894,964.

Each unit from the offering consists of one common share and one common share purchase warrant that falls under a warrant indenture agreement between Sugarbud and Computershare Trust Company of Canada. Under the indenture agreement and following disclosed terms and conditions, each warrant enables the holder to buy one common share at a price of 10 cents until Dec. 20, 2021.

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Upon executing the right offering, Sugarbud has 393.67 million common shares outstanding.

The company said it plans to utilize the proceeds from the offering to improve the capacity of its state-of-the-art vertical cannabis cultivation facility in Alberta, and for general working capital purposes.

“We are grateful for the support shown by our shareholders during the rights offering and look forward to a very exciting and productive 2020 as we begin to rapidly scale up our commercial efforts,” Sugarbud CEO John Kondrosky said in a statement.