Decibel Closes Previously Announced Offering of Units for Total Gross Proceeds of Approximately $15 Million, including Full Exercise of Over-Allotment Option
CALGARY, AB, Sept. 16, 2021 – Decibel Cannabis Company Inc. (“Decibel” or the “Company“) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer, is pleased to announce the closing of its previously announced bought deal prospectus offering (the “Offering“) of units of the Company (“Units“).
Pursuant to the Offering, the Company issued 51,750,000 Units at a price of $0.29 per Unit (the “Issue Price“) for aggregate gross proceeds of $15,007,500, which includes the full exercise of the over-allotment option granted to the Underwriters (as defined below). The Offering was conducted by Eight Capital, Haywood Securities Inc. and Raymond James Ltd, as co-lead underwriters and joint bookrunners (the “Underwriters“). Each Unit is comprised of one common share in the capital of the Company (a “Share“) and one-half of one common share purchase warrant (each whole warrant, a “Warrant“). Each Warrant entitles the holder thereof to purchase one Share at an exercise price of $0.40 for a period of 36 months following the closing date of the Offering. It is anticipated that the Warrants will be listed and posted for trading on the TSX Venture Exchange (“TSXV“) under the symbol DB.WT.A at the open of markets on September 17, 2021.
As consideration for their services, the Underwriters received a cash commission equal to $900,450 and, as additional consideration, the Company issued a total of 3,105,000 broker warrants to the Underwriters. Each broker warrant is exercisable into one Share at the Issue Price for a period of 24 months following the closing of the Offering.
For more details on the Offering please see the final short form prospectus in respect of the Offering, which is available on the Company’s profile at www.sedar.com.
For further information: Stuart Boucher, [email protected], 780-619-0310, www.decibelcc.com