Kiaro Completes C$3 Million Bought Deal Private Placement Led by Canaccord Genuity

Published: March 15, 2021

Kiaro Completes C$3 Million Bought Deal Private Placement Led by Canaccord Genuity

Kiaro Holdings Corp., a Canadian cannabis retailer and distributor, announced that further to its news release of February 11, 2021, it has now completed the previously announced private placement of units of the Company at a price of $0.16 per Unit for gross proceeds of $3,000,000. The Offering was carried out on a bought deal basis by Canaccord Genuity Corp. Each Unit consists of one common share of the Company and one half of one common share purchase warrant of the Company (each whole common share purchase warrant, a “Warrant”).

Each Warrant entitles the holder thereof to acquire one common share in the capital of the Company (a “Warrant Share”) at an exercise price of $0.23 per Warrant Share at any time before 5:00 p.m. (Vancouver Time) on March 11, 2024, provided that, the Warrants will be subject to the right of the Company to accelerate the expiry date of the Warrants if, at any time following July 12, 2021, the daily volume weighted average trading price of the common shares of the Company (the “Common Shares”) on the TSX Venture Exchange is greater than $0.35 per Common Share for the preceding 10 consecutive trading days (the “Acceleration Right”).

The Acceleration Right will be exercisable by the Company by delivery of the notice of acceleration (the “Acceleration Notice”) to the holders of the Warrants upon the Company’s exercise of the Acceleration Right by any means as determined by the Company, acting reasonably, and the concurrent issuance by the Company of a press release regarding the same, whereupon the Warrants shall expire on the date that is not less than 30 days immediately following the giving of the Acceleration Notice.

In connection with the Offering, the Underwriters received a cash commission in the aggregate amount of $210,000, which is equal to 7.0% of the gross proceeds raised under the Offering and 1,312,500 non-transferable broker warrants (the “Broker Warrants”), which is equal to 7.0% of the number of Units sold. Each Broker Warrant is exercisable into one unit of the Company consisting of one Common Share and one half of one Warrant (“BW Warrant”) until March 11, 2024, subject to the Acceleration Right, at a price of $0.16 per Broker Warrant. Each BW Warrant will be exercisable on the same terms as the Warrants.

Based in Vancouver, British Columbia, Kiaro is an independent, omni-channel cannabis retailer and distributor. Through existing storefronts across British Columbia and Saskatchewan, a wholesale distribution division servicing Saskatchewan, and plans for national expansion, Kiaro is driven to introduce new and experienced consumers to a lifelong exploration of cannabis. With more than 40 years of collective retail-focused experience, Kiaro’s leadership team has a proven track record of growing retail brands across North America and plans to open multiple retail locations nationwide over the coming years.