Sugarbud Announces Receipt of DTC Eligibility and the Close of a Non-Brokered Private Placement
CALGARY, Alberta, Sept. 14, 2021 (GLOBE NEWSWIRE) -- Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.DB, SUGR.WR, SUGR.WS, SUGR.WT) (OTCQB: SBUDF) ("Sugarbud" or the
"Company") is pleased to announce that its OTCQB listed common shares under the symbol SBUDF are now eligible for electronic clearing and settlement through the
Depository Trust Company ("DTC") in the United States.
“DTC eligibility supports our objectives to enhance liquidity while expanding our shareholder base and strengthening Sugarbud’s presence in the U.S. capital markets,” stated Sugarbud President and CEO, John Kondrosky. “With Sugarbud shares now traded electronically, existing shareholders benefit from greater liquidity and speed of trade execution, and new investors will be less restricted and have a much easier time participating in our stock,” concluded Mr. Kondrosky.
DTC is a subsidiary of the Depository Trust & Clearing Corporation; a U.S. company that manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through the DTC are considered to be "DTC eligible”. This electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for investors and brokers, enabling the stock to be traded over a much wider selection of brokerage firms by coming into compliance with their requirements. The Company expects DTC eligibility to greatly simplify the process of trading and transferring the Company's OTCQB listed common shares (SBUDF) between brokerages in the United States.
Non-Brokered Private Placement
The Company also announces the completion of a non-brokered private placement (the "Private Placement") for gross proceeds of $355,000, of which executive management and board members took up 74%.
Pursuant to the Private Placement, Sugarbud issued 8,875,000 units ("Units") at a price of $0.04 per Unit. Each Unit is comprised of one common share in the capital of Sugarbud (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.05 for a period of two years from the date of issuance, subject to early expiry in the event that the 5-day volume weighted average trading price of the Common Shares ("VWAP") equals or exceeds $0.125.