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TORONTO, Jan. 14, 2019 /CNW/ - Canaccord Genuity Growth Corp. ("CGGC") (NEO: CGGC.UN) announced today that Canaccord Genuity Growth Inc. ("CGG"), a wholly-owned subsidiary of CGGC, has obtained approval from the holders of subscription receipts (the "Subscription Receipts") for an amendment of the terms of the subscription receipt agreement (the "Subscription Receipt Agreement") extending the Escrow Release Deadline (as such expression is defined in the Subscription Receipt Agreement).
On November 21, 2018, CGGC announced that it had entered into a definitive agreement with respect to a business combination (the "Business Combination") with Columbia Care LLC, a leading medical cannabis company in the United States (the "Business Combination Agreement"). In connection with the proposed Business Combination, CGG issued Subscription Receipts in consideration of US$85.1 million pursuant to a brokered institutional private placement. CGG obtained the approval of the holders of the Subscription Receipts for an extension of the Escrow Release Deadline, which is the last date upon which the escrow release conditions may be satisfied before the Subscription Receipts are automatically terminated and the purchase price (and a pro rata share of all amounts earned thereon) is returned to investors, from March 1, 2019 to March 31, 2019 or, if Columbia Care and CGGC agree to extend the outside date under the Business Combination Agreement, to such date as is agreed to by Columbia Care and CGGC but, in any event, not later than April 30, 2019.
Holders of Subscription Receipts will become holders of common shares of CGGC to be renamed "Columbia Care Inc." upon completion of the Business Combination if the escrow release conditions are satisfied prior to the Escrow Release Deadline. The Business Combination remains subject to the satisfaction or waiver of certain customary conditions, including, among other things, receipt of all required third party consents, regulatory approvals (including that of the NEO Exchange) and the approval of shareholders of CGGC and holders of ownership interests in Columbia Care.
"Pursuing the merger with Canaccord Genuity Growth Corporation is among the most important corporate decisions since Columbia Care's founding," said Nicholas Vita, chief executive officer of Columbia Care. "It will enable us to access the public equity markets opportunistically to accelerate growth, enhance the efficiency of our operations and, at the same time, showcase our governance, strategy and enhanced transparency for regulators, stakeholders and partners. Our steady stream of accomplishments since the announcement of our merger with CGGC, including our expansion into Europe, demonstrates our relentless execution. As we prepare to navigate regulatory review and approval by Canadian authorities and move forward with our strategy, our enthusiasm remains rooted in the opportunities that lay ahead."
CGGC has also been provided with a business update from Columbia Care with respect to recent developments at Columbia Care since announcing its intent to execute the Business Combination Agreement. Columbia Care continues to actively pursue the growth and development of its operational footprint in selected jurisdictions, including:
In addition to the expansion of its operational footprint, Columbia Care further strengthened its cannabis research and IP development program, with the announcement of two key research initiatives:
About Canaccord Genuity Growth Corp.
Canaccord Genuity Growth Corp. is a newly organized special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purpose of effecting a qualifying transaction on the NEO Exchange within a specified period of time.
About Columbia Care LLC
Columbia Care is one of the U.S.'s largest and most experienced manufacturers and providers of medical cannabis products and services. It is licensed in highly selective and regulated jurisdictions and has completed more than 750,000 successful patient interactions since its inception. Working in collaboration with globally renowned and innovative teaching hospitals and medical centers, Columbia Care is a patient-centered healthcare company setting the standard for compassion, professionalism, quality, caring and innovation for a rapidly expanding new industry. For more information on Columbia Care, please visit www.col-care.com.
This press release may contain forward?looking information within the meaning of applicable securities legislation, which reflects CGGC's current expectations regarding future events including the proposed Business Combination. Forward?looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond CGGC's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward?looking information. Such risks and uncertainties include, but are not limited to, timing and requirements applicable to completion of the Business Combination, failure to complete the Business Combination, inability to obtain requisite regulatory and shareholder approvals, changes in general economic, business and political conditions, changes in applicable laws, compliance with extensive government regulation, as well as the factors discussed under "Risk Factors" in the final prospectus of CGGC dated September 13, 2018, a copy of which is available on SEDAR at www.sedar.com. CGGC undertakes no obligation to update such forward?looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
The NEO Exchange does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE Canaccord Genuity Growth Corp.
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