- RWB CEO Brad Rogers Took Part in the Upsized and Oversubscribed Bought Deal Offering
- The Bullish $25 Million Financing Was Completed at a 30% Premium to the Previous Day’s Closing Price
Red White & Bloom (CSE: RWB) (OTCQX: RWBYF) announced today the closing of the company’s previously reported bought deal with aggregate gross proceeds totalling $25,012,500. The offering featured a substantial investment from RWB Chairman and CEO Brad Rogers, with the cannabis industry legend picking up 866,666 units worth roughly $650,000.
The financing, which included the full exercise of the over-allotment option, was priced at $0.75 per unit, roughly 30% above yesterday’s close. Each unit consists of one RWB common share and one common share purchase warrant priced at $1 and exercisable for 24 months. The new warrants have been listed on the Canadian Securities Exchange (CSE) under the symbol RWB.WT.
Should the volume-weighted average price (VWAP) of RWB’s CSE listed common shares exceed $1.50 for ten consecutive trading days before the warrants’ expiration date, the company may notify warrant holders via press release that the warrants will expire at 5:00 p.m. (PST) on the 30th day following the date of such notice.
Red White & Bloom says it plans to use the net proceeds of the offering “to finance acquisition and investment activity, ongoing operations, expansion of the company’s executive team, ongoing regulatory matters, inventory, ongoing capital expenditures and general corporate purposes.”
In connection with the financing, the company paid the underwriters a cash fee equal to 6% of the gross proceeds and a total of 2,001,000 non-transferable compensation warrants priced at $0.75 and exercisable for 24 months.
Following the bought deal’s close, RWB repaid and surrendered for cancellation the convertible debenture issued to an arm’s length investor, which the company detailed in its September 14, 2020 press release.
Investor Research Links:
- CDN Listing | CSE: RWB
- U.S. Listing | OTCQX: RWBYF
- Website | IR Website | Investor Deck | RWB Chart | RWB Email Alerts
This U.S. Cannabis Stock Appears to Be Way Undervalued and May Actually Benefit From a Second Wave of the Pandemic
Red White & Bloom is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in RWB.
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