Agoracom Blog

Red Light Holland $ Announces $5 Million Bought Deal Equity Financing $ $ $MMED $ $ $

Posted by AGORACOM at 8:41 AM on Wednesday, February 3rd, 2021

Red Light Holland Corp. (“Red Light Holland” or the “Company”) (CSE:TRIP), an Ontario-based corporation positioning itself to engage in the production, growth and sale of a premium brand of magic truffles to the legal, recreational market within the Netherlands, is pleased to announce that it has entered into a letter of engagement with Eight Capital, under which Eight Capital has agreed to purchase, as sole bookrunner and underwriter, 11,600,000 units of the Company (the “Units”), on a “bought deal” basis pursuant to a filing of a short form prospectus, subject to all required regulatory approvals, at a price per Unit of $0.44 (the “Issue Price”) for gross proceeds of $5,060,000 (the “Offering”).

The Company has agreed to grant Eight Capital an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional approximately $750,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be approximately $5,750,000.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.70, for a period of 36 months following the closing of the Offering. If the daily volume weighted average trading price of the Common Shares on the Canadian Securities Exchange for any 10 consecutive days equals or exceeds $1.52, 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.

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