Kelowna, British Columbia–(Newsfile Corp. – October 27, 2020) – Citation Growth Corp. (CSE: CGRO) (OTCQX: CGOTF) (“Citation” or the “Company”), a licensed multi-state cannabis cultivator, producer and retailer, confirms it has closed the second tranche of a non-brokered private placement of unsecured Debentures for gross proceeds of $252,000. Each Debenture Unit consists of $1,000 principal amount of 10% unsecured subordinated debentures (“Debentures“) and 2,000 common share purchase warrants of the Company (“Warrants“). Together with the first tranche, closed on August 20, 2020, the Company raised a total of $1,032,000. The proceeds from the private placement will be used for general working capital purposes. The Company paid $12,600 finder’s fee in cash and issued 25,000 finder’s Warrants.
Each whole Warrant entitles the holder thereof to purchase one (1) common share of the Company at a price of $0.15 per Warrant Share, subject to adjustment in certain events, for a period of twenty-four (24) months. The Debentures mature on October 21, 2022 (“Maturity Date“). The Company will have the right to extend the Maturity Date to forty-eight (48) months from the date of issuance, at its option. The Debentures bear interest at a rate of 10% per annum, payable semi-annually in arrears on the last day of June and December of each year, commencing on December 31, 2020.
The Company continues to raise additional capital for the final tranche of financing, which will be allocated for general corporate purposes and working capital. Citation shall have the option (the “Over-Allotment Option“) to increase the size of the private placement up to 1,300 Debenture Units for a total of $1.3 million CAD if the Over-Allotment Option is exercised in full. The final tranche is expected to close on or before November 30, 2020.
About Citation Growth Corp.
Citation Growth Corp. (CSE: CGRO) (OTCQX: CGOTF)