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VANCOUVER, BC, June 9, 2021 /CNW/ – Wildpack Beverage Inc. (TSXV: CANS) (“Wildpack” or the “Company“) is pleased to announce that, due to strong demand, it has agreed with Stifel Nicolaus Canada Inc. (“Stifel GMP“) as sole bookrunner and lead underwriter, to increase the size of its previously announced $15,000,000 bought deal offering (the “Original Offering“) such that Stifel GMP will purchase 17,390 convertible debenture units of the Company (the “Debenture Units“), on a bought deal basis, at a price of $1,000 (the “Issue Price“) per Debenture Unit, for gross proceeds of $17,390,000 (the “Upsized Offering“). The Upsized Offering will be completed pursuant to the filing of a short form prospectus and subject to all required regulatory approvals. In addition, the Company will grant Stifel GMP an option (the “Over-Allotment Option“) to purchase up to 15% of additional debenture units (the “Option Debenture Units” and collectively with the Debenture Units, the “Offered Debenture Units“) exercisable in whole or in part, at any time on or prior to the date that is 30 days following the Closing Date. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Upsized Offering will be $20,000,000. Except for the increase in the number of Offered Debenture Units to be issued in connection with the Upsized Offering, the terms of the Upsized Offering will be identical to those of the Original Offering.
As previously announced, each Offered Debenture Unit consists of (i) one 8% senior unsecured convertible debenture having a face value of $1,000 and convertible into common shares of the Company (each a “Common Share“) at a conversion price of $1.51 per Common Share (the “Conversion Price“) and maturing four years from the Closing Date (as defined below) (the “Convertible Debentures“); and (ii) 332 common share purchase warrants of the Company (the “Warrants” and, together with the Convertible Debentures, the “Underlying Securities“). Each Warrant entitles the holder thereof to purchase one Common Share at $1.81 per share for a period of two years following the Closing Date.
The Offered Debenture Units will be offered by way of a short form prospectus to be filed in all provinces of Canada (except Quebec). The Company intends to use the net proceeds from the Upsized Offering for strategic acquisitions, capital expenditures for capacity expansion, working capital and general corporate requirements.
The Upsized Offering is expected to close on or about June 30, 2021 (the “Closing Date“). The Upsized Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals,…