Auxly Cannabis Group Inc. has entered into an agreement pursuant to which ATB Capital Markets Inc. (ATB), as sole bookrunner, and Cantor Fitzgerald Canada Corporation, acting as co-lead underwriters of the Offering, together with a syndicate of underwriters (collectively, the “Underwriters”), will purchase 47,620,000 Units of the Company (the “Units”), on a bought-deal basis at a price per Unit of $0.315 (the “Issue Price”) for gross proceeds of $15,000,300 (the “Offering”). A.G.P./Alliance Global Partners is acting as the sole U.S. sub-agent and financial advisor to the Company in connection with the Offering in the United States.
Each Unit shall be 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 shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.38 at any time up to 36 months from closing of the Offering. The Company has granted the Underwriters an option (the “Underwriters’ Option”) to increase the size of the Offering by up to an aggregate number of Units equal to 15% of the total number of Units issued under the Offering, such Underwriters’ Option being exercisable at any time and from time to time up to 30 days following the closing of the Offering.
The Company intends to use the net proceeds to continue to pursue strategic growth initiatives, including continued development, commercialization and expansion of its product portfolio, and for general corporate purposes.The closing of the Offering is expected to occur on or about the week of June 14, 2021 (the “Closing”), or such later or earlier date as the Underwriters and the Company may agree upon, and is subject to the Company receiving all necessary regulatory approvals, including the approval of the necessary securities regulatory authorities.
The Units will be offered by way of a prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated March 18, 2021 (the “Base Shelf Prospectus”), which will be filed in those provinces of Canada as the Company and the Underwriters may designate (excluding Quebec) pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and National Instrument 44-102 – Shelf Distributions. The Units may also be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.
The Prospectus Supplement and the Base Shelf Prospectus will contain important detailed information about the Offering. Copies of the Prospectus Supplement, following the filing thereof, and the Base Shelf Prospectus will be available on the Company’s profile on SEDAR at www.sedar.com. Copies of the Prospectus Supplement and the Base Shelf Prospectus may also be obtained in Canada from ATB Capital Markets Inc. at Suite 410, 585 8 Avenue SW Calgary, AB T2P 1G1 or by email at firstname.lastname@example.org.
About Auxly Cannabis Group Inc.
Auxly is a leading Canadian cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading research and development infrastructure in order to create trusted products and brands in an expanding global market. Learn more at www.auxly.com.