Auxly Announces Closing of Private Placement of Units for Gross Proceeds of $8.0 Million
TORONTO, May 20, 2021 — Auxly Cannabis Group Inc. (“Auxly” or the “Company”) (TSX: XLY) (OTCQX: CBWTF) is pleased to announce that it has closed its previously announced private placement offering of units (the “Units“) to an institutional investor (the “Investor”) for gross proceeds of approximately $8.0 million (the “Offering”). Pursuant to the Offering, the Company issued 23,880,598 Units of the Company at a price of $0.335 per Unit. ATB Capital Markets Inc. acted as exclusive agent on the Offering.
Each Unit is comprised of one common share of the Company (each a “Common Share“) and one-half of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant“). Each Warrant entitles the Investor to purchase one Common Share at an exercise price of $0.42 at any time up to 36 months from closing of the Offering.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
No securities regulatory authority has either approved or disapproved of the contents of this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities 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 news release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
ON BEHALF OF THE BOARD
“Hugo Alves“ CEO
About Auxly Cannabis Group Inc. (TSX: XLY)
Auxly is a vertically integrated cannabis company dedicated to bringing branded cannabis products to market that consumers love and trust. Our team of professionals and cannabis enthusiasts are united by a shared commitment to quality and our consumers. We build powerful value propositions with brands that connect and products that deliver on our consumer promise of quality, safety and efficacy.
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Notice Regarding Forward Looking Information:
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the expected use of proceeds of the Offering; future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting the Company in particular and the cannabis industry generally.
A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. Readers should not place undue reliance on forward-looking information contained in this release. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Neither Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.