pcNewsWire – Golden Leaf Holdings Ltd. (CSE: GLH; OTCQB: GLDFF) has closed previously announced best efforts private placement of 8,928,571 units at $0.28 per unit for gross proceeds of $2.5 million.
Canaccord Genuity Corp. acted as the lead agent for a syndicate of agents including Echelon Wealth Partners Inc. and Mackie Research Capital Corporation. AC Group Financial Inc. acted as an advisor.
News Release
Golden Leaf Announces Closing of C$2.5 Million Unit Financing
TORONTO, ONTARIO–(Marketwired – June 6, 2017) – Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE:GLH) (OTCQB:GLDFF), a leading cannabis oil solutions company built around recognized brands, is pleased to announce the closing of its previously announced best efforts private placement offering (the “Offering”) of units (the “Units”). Pursuant to the Offering, the Company has sold 8,928,571 Units, at a price of C$0.28 per Unit (the “Issue Price”), for aggregate gross proceeds of C$2.5 million. Each Unit is comprised of one common share in the capital of the Company (each, a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (each, a “Warrant Share”) at a price of $0.37 per Warrant Share, until June 2, 2019, subject to adjustment in certain events.
Canaccord Genuity Corp. acted as the lead agent for a syndicate of agents (the “Agents”) including Echelon Wealth Partners Inc. and Mackie Research Capital Corporation. AC Group Financial Inc. acted as an advisor to the Company in connection with the Offering and the four previously announced acquisitions being undertaken by the Company.
The net proceeds from the Offering are anticipated to be used to satisfy the cash component of the purchase price for the Company’s recently announced acquisitions and for existing operations.
In accordance with the terms of the Offering, the lead subscriber under the Offering or the Agents, in certain instances, have been granted an option (the “Option”) to purchase up to $2.5 million of additional Units, which option is exercisable for a period ending 15 business days following the date the issued and outstanding subscription receipts of the Company are converted or cancelled in accordance with their terms.
As consideration for the services provided by the Agents in connection with the Offering, the Agents received a cash commission of C$175,000. As additional consideration, the Agents were granted 625,000 compensation warrants (the “Compensation Warrants”). Each Compensation Warrant entitles the holder thereof to acquire one Common Share and one-half of one Warrant at the Issue Price until June 6, 2019.
All securities issued pursuant to the Offering are subject to a statutory hold period of four months and one day, expiring on October 7, 2017.
About Golden Leaf Holdings:
Golden Leaf Holdings Ltd. is one of the largest cannabis oil and solution providers in North America. It’s a leading cannabis products company in Oregon built around recognized brands. GLH leverages a strong management team with cannabis and food industry experience to complement its expertise in extracting, refining and selling cannabis oil.
For further information, please contact:
Investor Relations – U.S.A.
Harrison Phillips
Viridian Capital Advisors, LLC
212-209-3086
hphillips@viridianca.com
Investor Relations – Canada
Paul Searle
Golden Leaf Holdings Ltd.
778-240-7724
psearle@goldenleafholdings.com
Eugene Hill
Chief Financial Officer
Golden Leaf Holdings Ltd.
ghill@goldenleafholdings.com
