Green Growth Brands completes first equity raise for CA$50.2 million

A Columbus, Ohio-based cannabis retailer that distributes 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 Canadian dollars ($37.8 million).

Green Growth Brands said in a statement that the raise is intended to fuel expansion.

The company plans to combine the $37.8 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.
• The cash portion of the purchase price to complete the acquisition of Henderson Organic Remedies.
• The deferred cash compensation and other fees for the acquisition of Spring Oaks Greenhouses.
• Ongoing capital expenditures and general corporate purposes.

The deal was completed by underwriters led by Canaccord Genuity Corp. and including Eight Capital, Cormark Securities, GMP Securities, Paradigm Capital, Beacon Securities and Haywood Securities.

Green Growth Brands, which sells topicals and personal-care items, trades on the Canadian Securities Exchange as GGB and on U.S. over-the-counter markets as GGBXF.