A Columbus, Ohio-based cannabis retailer with distribution of CBD products at big-box retail stores and malls across America has completed its initial equity raise through a bought deal offering for $50.2 million.
Green Growth Brands says in a company statement that the raise is intended to fuel expansion.
The company says it will combine the $50 million with a $102.7 million backstop commitment from a family of majority shareholders, the Schottenstein family, owner of some of America’s largest fashion retailers.
Green Growth Brands will use the proceeds of the offering toward funding:
- The balance of the cash purchase price for the acquisition of Nevada Organic Remedies LLC.
- The cash portion of the purchase price to complete the acquisition of Henderson Organic Remedies LLC.
- The deferred cash compensation and other fees for the acquisition of Spring Oaks Greenhouses, Inc.
- Ongoing capital expenditures and general corporate purposes.
The deal was completed by underwriters led by Canaccord Genuity Corp. and including Eight Capital, Cormark Securities Inc., GMP Securities LP, Paradigm Capital Inc., Beacon Securities Limited and Haywood Securities Inc.
Green Growth Brands sells topicals and personal care items and trades on the Canadian Securities Exchange as GGB and on U.S. over-the-counter markets as GGB.XF.