Greenlane Renewables Announces Increase to Bought Deal Offering
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THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA), OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
VANCOUVER, British Columbia, Jan. 20, 2021 (GLOBE NEWSWIRE) -- Greenlane Renewables Inc. (TSXV: GRN) (“Greenlane” or the “Company”) is pleased to announce that based on strong demand it has increased the size of its previously announced bought deal offering from $20 million to $23 million. Pursuant to the amended terms, the syndicate of underwriters led by TD Securities Inc. (the "Underwriters") agreed to purchase, on a bought deal basis, 10,600,000 common shares of the Company (the "Shares") at a price of $2.17 per Share, for gross proceeds of approximately $23 million (the "Offering"). The Company will also grant to the Underwriters an over-allotment option (the "Over-Allotment Option") to increase the size of the Offering by up to an additional 15%, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering.
The Company will use the net proceeds of the Offering for development of and investments in new renewable natural gas projects, for strategic growth initiatives, and for general corporate purposes (including the Company’s ongoing business initiatives) and working capital.
The Offering is expected to close on or about January 27, 2021, subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The Shares will be issued pursuant to a prospectus supplement that will be filed with the securities regulatory authorities in each of the provinces of British Columbia, Alberta, Manitoba and Ontario under the Company’s base shelf prospectus dated July 31, 2019 and may also be offered by way of private placement into the United States pursuant to Rule 144A. No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, unless an exemption from registration is available. This news release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.