/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
LAS VEGAS, Jan. 12, 2021 /CNW/ – Planet 13 Holdings Inc. (“Planet 13” or the “Company“) (CSE:PLTH) (OTCQB:PLNHF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the “Underwriters“) co-led by Beacon Securities Limited (“Beacon“) and Canaccord Genuity Corp. pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 7,150,000 units (the “Units“) in the capital of the Company at a price of $7.00 per Unit (the “Offering Price“) for aggregate gross proceeds to the Company of $50,050,000 (the “Offering“). (All figures are in Canadian dollars unless otherwise stated).
Each Unit shall consist of one common share (a “Common Share“) in the capital of the Company and one-half (1/2) of one common share purchase warrant (each whole warrant, a “Warrant“) of the Company. Each whole Warrant shall entitle the holder thereof to acquire one Common Share at an exercise price per Common Share of $9.00 for a period of 24 months from the Closing Date (as defined below).
The closing of the Offering is expected to occur on or about February 2, 2021 (the “Closing Date“) and is subject to the completion of formal documentation and receipt of all regulatory approvals, including the approval of the Canadian Securities Exchange. The net proceeds from the Offering will be used for potential acquisitions, working capital and general corporate purposes.
The Company has granted the Underwriters an option (the “Over-Allotment Option“), exercisable, in whole or in part, by Beacon, on behalf of the Underwriters, giving notice to the Company at any time and from time to time up to 30 days following the Closing Date, to purchase, or to find substituted purchasers for, up to an