CGOC Acquires Multiple Voting Shares of a Current Investee Company
TORONTO, July 31, 2020 /CNW/ - Cannabis Growth Opportunity Corporation ("CGOC", or the "Company") (CSE: CGOC), a cannabis focused investment corporation with both public and private cannabis holdings, announced today that on July 30, 2020, the Company privately purchased and acquired 10,000 multiple voting shares ("Multiple Voting Shares") of Bhang Inc. ("Bhang") at a price of C$30 per Multiple Voting Share for a total purchase price of C$300,000 (the "Acquisition").
Early Warning Disclosure Pursuant to National Instrument 62-103
Prior to completion of the Acquisition, the Company did not hold any Multiple Voting Shares. As of the date hereof, upon completion of the Acquisition, the Company beneficially owns or controls 10,000 Multiple Voting Shares, representing approximately 16.77% of the issued and outstanding Multiple Voting Shares on a non-diluted basis and a partially diluted basis.
As of the date hereof, upon completion of the Acquisition, the Company beneficially owns or controls 37,544,833 subordinate voting shares ("Subordinate Voting Shares") of Bhang, 15,500,000 warrants (the "Warrants") to acquire Subordinate Voting Shares representing approximately 40.27% of the issued and outstanding Subordinate Voting Shares on a non-diluted basis, and approximately 56.16% of the issued and outstanding Subordinate Voting Shares on a partially diluted basis, assuming the exercise of all of the Warrants held by the Company, the conversion of a credit facility held by the Company and the conversion of all of the Multiple Voting Shares held by the Company.
The Multiple Voting Shares were acquired for investment purposes. While Company currently has no plans or intentions with respect to its securities of Bhang, the Company may from time to time acquire additional securities of Bhang, may sell all or a portion of its securities of Bhang or may continue to hold the Multiple Voting Shares or other securities of Bhang, depending on market conditions, the Company's view of Bhang's prospects, other investment opportunities and other factors considered relevant to the Company.
A copy of the early warning report to be filed by the Company will be available under Bhang's issuer profile on SEDAR at www.sedar.com or by contacting Sean Conacher, CEO at 416.912.2932. The Company's head office is located at 240 Richmond Street West, Suite 4164, Toronto, Ontario, M5V 1V6.
About CGOC
CGOC is an investment corporation that offers unique global exposure to the emerging global cannabis sector. CGOC's main objective is to provide shareholders long-term total return through its actively managed portfolio of securities, both public and private, operating in, or that derive a portion of their revenue or earnings from products or services related to the cannabis industry.
Forward-looking Statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the Company's business plan and matters relating thereto, and risks associated with the Company's investments and financial objectives, as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's public filings on SEDAR. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
SOURCE Cannabis Growth Opportunity Corporation
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