Sunniva Inc.. Announces $10 Million Bought Deal Public Offering

Announces $10 Million Bought Deal Public Offering

Sunniva Inc. (“Sunniva” or the”Company”) (CSE:SNN) (OTCQX:SNNVF) is pleased to announce that it has entered into an agreement with Beacon Securities Limited (“Beacon”) and Canaccord Genuity Corp. (together with Beacon, the”Co-Lead Underwriters”), on behalf of a syndicate of underwriters (together with the Co-Lead Underwriters, the”Underwriters”), to purchase, on a bought deal basis, 1,900,000 units (the”Units”) in the capital of the Company at a cost of $5.27 per Unit (the”Offering Price”) for aggregate gross proceeds to the Company of $10,013,000 (the”Offering”). (All figures are in Canadian dollars unless otherwise stated).

Each Unit will consist of one common share (a”Common Share”) in the capital of the business 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 $6.85 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 October 10, 2018 (the “Closing Date”) and is subject to the completion of formal documentation and receipt of regulatory approval, including the approval of the Canadian Securities Exchange. The proceeds from the Offering will be used for 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 buyers up to an additional number of Units equal to 15% of the amount of Units sold pursuant to the Offering in the Offering Price to cover over-allotments, if any, and for market stabilization purposes.

The Units to be issued under the Offering will be offered by way of a short form prospectus to be filed in the provinces of British Columbia, Alberta and Ontario (and such other provinces as agreed between the Company and the Underwriters) and may be offered in the United States to Qualified Institutional Buyers pursuant to exemptions from the registration requirements under rule 144A of the United States Securities Act of 1933, as amended (the”U.S. Securities Act”), in a manner that does not require the Units to be registered in the United States. The Components may also be offered in such other authorities as the organization and Beacon may agree. This press release does not constitute an offer to sell or the solicitation of an offer.

Published at Tue, 18 Sep 2018 20:10:53 +0000

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