- Cannabis company, Citation Growth (CGRO) has closed the first tranche of a private placement, after raising C$780,000 in gross proceeds
- Each placement unit consists of $1,000 principal amount of 10 per cent unsecured debentures and 2,000 common share purchase warrants
- Proceeds from the non-brokered placement will be used for legal settlements and Citation Growth’s general working capital
- The company plans to raise additional capital for the placement’s second tranche, which should close by September 30, 2020
- Citation Growth (CGRO) is up 20 per cent and is currently trading at nine cents per share
Cannabis company, Citation Growth (CGRO) has closed the first tranche of a private placement, after raising C$780,000 in gross proceeds.
The capital raising tranche was part of a non-brokered private placement of unsecured debentures. Each debenture unit consists of $1,000 principal amount of 10 per cent unsecured debentures and 2,000 common share purchase warrants.
Each whole warrant entitles the holder to buy one more common share in Citation Growth at $0.15 per share, within 24 months. The debentures will mature on August 20, 2022, although the company has the right to extend the maturity date to 48 months from the issue date.
The debentures bear interest at a rate of 10 per cent each year, payable semi-annually in arrears on the last day of June and December each year. This will begin as of December 31, 2020.
Proceeds from the placement’s first tranche will go towards legal settlements and Citation Growth’s general working capital purposes. Proceeds from the second tranche of the placement will be for general corporate purposes and working capital.
Citation Growth is currently raising additional capital for the placment’s second tranche, which should close by September 30, 2020. The company has the option to increase the size of the private placement up to 1,300 debenture units if the over-allotment option is fully exercised.
If this occurs, this would produce total gross proceeds of $1.3 million for the company.
Citation Growth (CGRO) is up 20.00 per cent and is trading at nine cents per share, as of 11:14am EDT.