Sunniva Inc. (CSE:SNN) (OTCQX:SNNVF) is pleased to announce that it has completed its bought deal public offering for aggregate gross proceeds of $27,797,275. A total of 2,850,900 units and 50,000 Warrants (as defined below) of the Company were sold pursuant to the Offering, including 284,900 Units and 50,000 Warrants issued as a result of the partial exercise of the Underwriters' over-allotment option, at a price of $9.75 per Unit and $0.02 per Warrant. The Offering was conducted by a syndicate of underwriters co-led by Beacon Securities Limited and Canaccord Genuity Corp. and including Bloom Burton Securities Inc.. (All figures are in Canadian dollars unless otherwise stated).
Each Unit consists of one common share (a "Common Share") in the capital of the Company and one-half (1/2) of one Common Share purchase warrant (each whole warrant, a "Warrant") of the Company. Each whole Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $12.50 per Common Share for a period of 24 months from the closing of the Offering.
The net proceeds from the Offering will be used to fund deposits for commencing development at the Sunniva Canada Campus, a 700,000 square foot greenhouse facility in British Columbia, purchasing additional equipment for the extraction facility in California owned by A1 Perez, LLC, a wholly-owned subsidiary of the Company, the additional development of the Company's SPARK enterprise platform to support continued Natural Health Services Ltd. patient expansion and for working capital purposes.
The Units issued under the Offering were offered by way of a short form prospectus dated March 20, 2018 (the "Prospectus") filed in the provinces of British Columbia, Alberta and Ontario and were offered in the United States to Qualified Institutional Buyers pursuant to exemptions from the registration requirements under rule 144A of the United States Securities Act of 1933, as amended, in a manner that does not require the Units to be registered in the United States. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated medical cannabis company operating in the world's two largest cannabis markets – Canada and California – where we are committed to delivering safe, high-quality products and services at scale. Our vision is to become the lowest cost, highest quality cannabis producer in the markets we serve by building large scale purpose-built current good manufacturing practices ("cGMP") greenhouses, offering better quality assurance with cannabis products free from pesticides, providing better patient and doctor access to cannabis education and sourcing better therapeutic delivery devices. Sunniva's management and board of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech industries.
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Sunniva Inc. Closes $27.8 Million Bought Deal Public Offering
