Green Growth Brands Completes 27.3 Million Share Buyback and Cancels 13% of Outstanding Shares
COLUMBUS, May 16, 2019 /CNW/ - Green Growth Brands, Inc. (CSE: GGB) (OTCQB: GGBXF) ("GGB" or the "Company") is pleased to announce that it has completed the repurchase (the "Repurchase Transaction") and cancellation of 27,300,000 of its common shares held by GA Opportunities Corp. ("GAOC") (previously announced on April 15, 2019), representing approximately 13% of its outstanding shares. Aggregate consideration for the Repurchase Transaction was C$89 million, or approximately C$3.26 per common share, at a significant discount to the current market price of GGB's common shares.
We are pleased to have completed our buy back of the shares previously held by GA Opportunities
said Peter Horvath, CEO of GGB.
While we continue to focus on the rapid expansion of GGB, the opportunity to repurchase these shares well below the current market price immediately and directly increased shareholder value
The aggregate consideration for the Repurchase Transaction was satisfied by delivery of a secured promissory note (the "Note") in the principal amount of C$39,000,000 and cash in the amount of C$50,000,000. The cash portion of the consideration was satisfied by the proceeds received by the Company from the sale of common shares of Aphria Inc. and the exercise of Company common share and proportionate voting share warrants, with the balance satisfied by cash on hand. As previously disclosed, the Note is payable in six months from the closing of the Repurchase Transaction and bears interest at 3% per annum.
Green Growth Brands creates remarkable experiences in cannabis and CBD, led by CEO Peter Horvath and a leadership team of consumer-focused retail experts. Their brands include CAMP, Seventh Sense Botanical Therapy, The+Source, Green Lily and Meri + Jayne, with a licensing agreement with the Greg Norman Brand. Already boasting the strongest sales per square feet in the cannabis industry, GGB is expanding its presence in Nevada, Massachusetts and Arizona with CBD presence at ShopSeventhSense.com, in malls across the country and at DSW shoe stores—and that's just the beginning. Learn more about our vision at GreenGrowthBrands.com.
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to, among other things, repayment of the Note. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Company. Although such statements are based on management's reasonable assumptions, there can be no assurance that such events will occur or will be completed on the terms described above.
The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
This announcement does not constitute an offer, invitation or recommendation to subscribe for or purchase any securities and neither this announcement nor anything contained in it shall form the basis of any contract or commitment. In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any other jurisdiction in which such an offer would be illegal. The securities referred to herein have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.
SOURCE Green Growth Brands