Nextleaf Solutions Announces $3 Million Marketed Public Offering of Units

NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Dec. 07, 2021 (GLOBE NEWSWIRE) -- Nextleaf Solutions Ltd. (“Nextleaf”, “OILS”, or the “Company”) (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA), a federally regulated producer of cannabis oil that distributes cannabis vapes and oils under its prohibition-era brand, Glacial Gold, is pleased to announce that it has entered into an engagement letter with Research Capital Corporation (the “Agent”) in respect of a marketed public offering (the “Offering”) of units of the Company (the “Units”) for minimum aggregate gross proceeds of $3,000,000. The Agent has agreed to act as sole agent and bookrunner on a best efforts basis pursuant to the filing of a prospectus supplement (the “Supplement”) to the Company’s short form base shelf prospectus dated November 23, 2021 (the “Prospectus”), to offer for sale the Units at an indicative price of $0.20 per Unit, as determined in the context of the market (the “Offering Price”).

Each Unit will be comprised of one common share in the capital of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”). Each Warrant will be exercisable to acquire one Common Share at an indicative exercise price of $0.275 per Common Share for a period of 24 months following closing of the Offering. The definitive structure, including the exercise price and the expiry date of the Warrants will be determined in the context of the market and described in the Supplement.

The Company has granted the Agent an option to purchase up to an additional 15% of the Units, and/or the components thereof, offered in the Offering on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes.

The Company intends to use the net proceeds of the Offering for the procurement and delivery of its cannabis products to various provincial markets nationally, for the partial repayment of principal and interest on a senior secured convertible note of the Company, for general and administrative expenses and for working capital and general corporate purposes.

The Offering is expected to close on or about December 16, 2021 and is subject to the Company fulfilling certain conditions and receiving all necessary regulatory and stock exchange approvals.