Auxly Announces Upsized Bought-Deal Public Offering to $12 Million

Published: November 25, 2020

Auxly Announces Upsized Bought-Deal Public Offering to $12 Million

Auxly Cannabis Group Inc. has entered into a revised agreement with Mackie Research Capital Corporation as the sole underwriter and sole bookrunner, to increase the size of the previously announced bought-deal short-form prospectus offering of units of the Company (the “Units”) to 40,000,000 Units at a price of $0.30 per Unit for aggregate gross proceeds of $12,000,000 (the “Offering”).

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 $0.40 at any time up to 36 months from closing of the Offering.

The Company has granted the Underwriter an option (the “Underwriter’s Option”) to increase the size of the Offering by up to an additional number of Units, and/or the components thereof, that in aggregate would be equal to 15% of the total number of Units to be issued under the Offering, exercisable at any time and from time to time up to 30 days following the closing of the Offering.

The net proceeds from the Offering will be used for working capital and general corporate purposes.

The closing of the Offering is expected to occur on or about the week of December 11, 2020 (the “Closing”), or such later or earlier date as the Underwriter 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 short form prospectus to be filed in those provinces of Canada as the Underwriter may designate pursuant (except Quebec) to National Instrument 44-101 – Short Form Prospectus Distributions and may 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.

Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, 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.

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