Sugarbud Craft Growers Corp (TSXV: SUGR) has completed its rights offering, which was originally announced on November 15, 2019. The offering, which was expected to raise up to $5.2 million for the struggling firm by all accounts was a failure, with the financing raising only 17% of its target.
The rights offering itself raised $894,964 in funds for Sugarbud, who had originally estimated that the offering could raise approximately $5.2 million. In total, 16,272,075 rights were exercised, resulting in an equal number of units being issued to current shareholders. Each unit, priced at $0.055, contained one common share and one common share purchase warrant. Each warrant is exercisable at a price of $0.10 for a period of two years.
An acceleration clause is also present on the warrant, with the company having the ability to accelerate the expiry date of the warrant should the five day volume weighted average price of the equity meet or exceed $0.125.
Following the rights offering, and the concurrently announced and since closed private placement for $925,000, Sugarbud has 393,668,532 common shares outstanding.
Sugarbud Craft Growers last traded at $0.06 on the TSX Venture.
Information for this briefing was found via Sedar and SugarBud Craft Growers. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
