Ottawa, Canada – February 15, 2017 – CannaRoyalty Corp. (CSE: CRZ) (“CannaRoyalty” or the “Company”) announces that it has closed its previously announced offering of an aggregate of 5,000,000 units (the “Units”) at a price of $3.00 per Unit, for aggregate gross proceeds to CannaRoyalty of $15,000,000 (the “Offering”). The Offering was completed by a syndicate of underwriters led by Canaccord Genuity Corp.
Each Unit comprises one common share of CannaRoyalty (a “Common Share”) and 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 (a “Warrant Share”) for a period of 2 years at an exercise price of $4.50 per Warrant Share. The Warrants will be subject to a 21-day forced exercise provision if CannaRoyalty’s daily volume weighted average share price is greater than $6.00 for 15 consecutive trading days following closing.
“The CannaRoyalty business model is providing many exciting growth opportunities. The proceeds from this offering are in large part for acquisitions and investment in these opportunities in addition to continued funding of our existing holdings, and working capital purposes,” said Marc Lustig, Chief Executive Officer of CannaRoyalty.
The Units were offered and sold by way of a short form prospectus filed in each of the provinces of Canada, excluding the province of Quebec. The securities issued pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
CannaRoyalty is a fully integrated, active investor and operator in the legal cannabis sector. Our focus is to build and support a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt and licensing agreements.
For further information, please contact:
Investor inquiries: InvestorRelations@cannaroyalty.com;