TORONTO: Red Light Holland Corp., an Ontario-based corporation, has closed its previously announced bought deal short form prospectus offering, including the exercise in full of the underwriter’s over-allotment option.
In connection with the offering, the Company issued 38,334,100 units of the Company at a price of $0.255 per Unit, for aggregate gross proceeds of $9,775,195. The Offering was conducted by Eight Capital.
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“To have Red Light Holland – The People’s Company, being supported by ‘The Suits’ alongside our new and existing shareholders truly strengthens our Psychedelic Movement and our growth. We are so grateful for all of our loyal supporters and we now have over $20 million1 of capital available which is incredible! This funding will enable us to fully execute on our business plan and the Red Light Holland team will continue working hard towards our goal of developing a leading brand in this emerging industry. Our mission continues – providing legal and responsible adult access now,” said Todd Shapiro, CEO and Director of Red Light Holland.
Each Unit is comprised of one common share in the capital of the Company and one Common Share purchase warrant.
Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.38, for a period of 42 months following the closing of the Offering.
In the event that the volume weighted average trading price of the Common Shares exceeds $0.89 for 10 consecutive trading days, the Company may, upon providing written notice to the holders of the Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.
The Warrants will be listed for trading on the facilities of the Canadian Securities Exchange (CSE) under the symbol TRIP.WRT3.
The Company has received approval from the CSE to list the Warrants and the Warrants are expected to commence trading on the date hereof.
The Company intends to use the net proceeds from the Offering as disclosed in the final prospectus in relation to the Offering.
In consideration for their services in connection with the Offering, the Company paid to the Underwriter a cash fee equal to $677,934 and issued to the Underwriter 2,661,762 compensation options.
Each Compensation Option may be exercised to acquire one Unit at $0.255 for a period of 42 months following the closing of the Offering. Each Unit underlying the Compensation Options have the same terms as those issued under the Offering.
Red Light Holland is an Ontario-based corporation positioning itself to engage in the production, growth and sale (through existing Smart Shops operators and an advanced e-commerce platform) of a premium brand of magic truffles to the legal, recreational market within the Netherlands, in accordance with the highest standards, in compliance with all applicable laws.
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