TORONTO, Nov. 8, 2019 /CNW/ - This news release is issued by Ryan Brown and 9329-7158 Quebec Inc. (together, the "Acquirors") pursuant to the early warning requirements of National Instrument 62-104 and National Instrument 62-103 with respect to the acquisition by Acquirors of debenture units (each a "Debenture Unit") of North Bud Farms Inc. (the "Issuer").
On November 6, 2019, in connection with the closing of a non-brokered private placement of the Issuer, the Acquirors purchased 664 Debenture Units of the Issuer, each consisting of $1,000 principal amount of 10% secured convertible debentures of the Issuer (a "Debenture") and 2,000 common share purchase warrants (each a "Warrant"), at price of $1,000 per Debenture Unit for gross proceeds to the issuer of $664,000 (the "Private Placement Transaction"). Each Debenture may be converted into common shares in the capital of the Issuer (each a "Conversion Share") at a conversion price of $0.30 per Conversion Share. Each Warrant entitles the holder thereof to purchase one common share in the capital of the Issuer (a "Warrant Share") at an exercise price of $0.25 per Warrant Share. The Debentures mature on November 6, 2022 and the Warrants expire on May 6, 2021 respectively.
Prior to the Private Placement Transaction, the Acquirors owned and controlled 3,390,862 common shares in the capital of the Issuer (each a "Common Share"), representing 5.34% of the issued and outstanding Common Shares, assuming the exercise of 1,000,000 options to acquire Common Shares (the "Options") by the Acquirors.
As a result of the closing of Private Placement Transaction, the Acquirors own a total of 6,932,195 common shares of the Issuer, representing 10.20% of the issued and outstanding common shares of the Issuer, assuming the conversion and exercise of the Debentures and Warrants comprising the Debenture Units and the exercise of the Options by the Acquirors.
In the future, additional securities of the Issuer may be acquired or disposed of by the Acquirors, through the market, privately or otherwise, subject in all cases to market conditions and compliance with applicable securities laws.
For further information, and to obtain a copy of the early warning report filed under applicable securities legislation in connection with the transactions described herein, please go to the Issuer's profile on the SEDAR website at www.sedar.com, or contact Mr. Ryan Brown at 855-359-2475.
SOURCE Ryan Brown and 9329-7158 Quebec Inc.
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