Net proceeds from the Offering expected to be used to fund the Company's business development.
Charlotte's Web Holdings, Inc. (TSX: CWEB), the market leader in hemp CBD extract products, announces today that it has entered into an agreement with Canaccord Genuity Corp., pursuant to which the Lead Underwriter, together with a syndicate of underwriters including Cormark Securities Inc., Eight Capital and PI Financial Corp. has agreed to purchase, on an underwritten basis, 10,000,000 units of the Company, at a price of C$6.75 per Unit, for aggregate gross proceeds to the Company of C$67,500,000.
Each Unit will be comprised of one common share of the Company and one half of one common share purchase warrant. Each Warrant will be exercisable to acquire one common share for a period of 2 years following the closing date of the Offering at an exercise price of C$8.50 per Warrant Share, subject to adjustment in certain events.
In addition, the Company has granted the underwriters a 30-day option to purchase up to 1,500,000 additional units on the same terms as the Offering. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be C$77,625,000.
Net proceeds from the Offering are expected to be used primarily to fund the Company's business development and for general working capital purposes.
The Units will be offered in each of the provinces of Canada, other than Québec, pursuant to the Company's base shelf prospectus dated April 8, 2019, and may also be offered by way of private placement in the United States to "qualified institutional buyers". The terms of the Offering will be described in a prospectus supplement to be filed with the securities regulators in each of the provinces of Canada, except Québec.
Copies of the Supplement, following the filing thereof, and accompanying Base Prospectus may be obtained on SEDAR at www.sedar.com and from Canaccord Genuity Corp., 161 Bay Street, Suite 3000, Toronto, ON M5J 2S1. The Base Prospectus contains, and the Supplement will contain, important detailed information about the Company and the Offering. Prospective investors should read the Supplement and accompanying Base Prospectus and the other documents the Company has filed on SEDAR at www.sedar.com before making an investment decision.
Closing of the Offering is expected to occur on or about June 18, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The common shares have not been and nor will they be registered under the United States Securities Act of 1933, as amended or any state securities laws. Accordingly, the common shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Charlotte's Web in any jurisdiction in which such offer, solicitation or sale would be unlawful.
To learn more about Charlotte's Web Holdings, visit the company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
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