Flower One Files Prospectus Supplement for $5 Million Offering of Equity Units and Announces Concurrent Non-Brokered Financing of up to $2.5 Million – Benzinga


TORONTO, Sept. 14, 2020 /CNW/ – Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE:FONE) (OTCQX:FLOOF) is pleased to announce that in connection with its previously announced overnight marketed offering of equity units (the “Equity Units”) of the Company, the Company and Canaccord Genuity Corp. (“Canaccord”), as lead underwriter and sole bookrunner, and Roth Canada, ULC (together with Canaccord, the “Underwriters”), have entered into an underwriting agreement dated September 14, 2029 (the “Underwriting Agreement”). Pursuant to the Underwriting Agreement, the Underwriters have agreed to purchase, on an underwritten basis, 20,000,000 Equity Units at a price of C$0.25 per Equity Unit for aggregate gross proceeds to the Company of $5,000,000 (the “Offering”). Concurrently with the Offering, the Company will also complete a non-brokered financing of up to 10,000,000 Equity Units for additional gross proceeds to the Company of up to $2,500,000 (the “Concurrent Offering”). All amounts are in Canadian dollars.

Each Equity Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will be exercisable into one Common Share for a period of 36 months from the closing of the Offering at an exercise price of C$0.36, subject to adjustment in certain events.

The Company has also granted the Underwriters an option (the “Over-Allotment Option”) to cover over-allotments and for market stabilization purposes, exercisable at any time up to 30 days subsequent to the closing of the Offering, to increase the size of the Offering by up to 15% in Equity Units (or the components thereof) on the same terms and conditions of the Offering, exercisable in whole or in part. In the event that the Over-Allotment Option is exercised in full, the

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