(TheNewswire)
Toronto, Canada / TheNewswire / February 28, 2017 - Organic Garage Ltd. (CSE:OG) (“the “Company”) is pleased to announce that it has completed its previously announced brokered private placement (the “Offering”) of units (the “Units”). Cormark Securities Inc. (“Cormark” or the “Agent”) acted as the sole agent in connection with the Offering. Pursuant to the Offering, the Company issued 10,993,500 Units at a price of $0.25 per Unit for aggregate gross proceeds of $2,748,375, which exceeded the minimum targeted financing amount of $1,500,000, as disclosed in the news release on February 6, 2017. Each Unit consisted of one common share (a “Common Share”) and one common share purchase warrant (a “Warrant”) entitling the holder to acquire one Common Share at a price of $0.35 for a period of two years following the closing date.
The net proceeds of the Offering will be used for growth initiatives as well as general corporate and working capital purposes. The Offering remains subject to final approval of the Canadian Securities Exchange.
Cormark received a cash commission equal to 6.0% of the gross proceeds raised in the Offering and was granted compensation options to purchase common shares of the Company equal to 6.0% of the total number of Units issued pursuant to the Offering, exercisable for a 24-month period from the closing of the Offering at a price of $0.25 per common share.
One or more insiders of the Company participated in a portion of the Offering, to be set out in a material change report. The Company did not file a material change report 21 days prior to the closing of the Offering as insider participation had not been established at that time.
All securities issued in connection with the Offering are subject to a four-month hold period.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The common shares and warrants will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
About Organic Garage Ltd.
Organic Garage (CSE: OG) is one of Canada’s leading independent organic grocers committed to offering its customers a wide selection of healthy and natural products at everyday affordable prices. The company’s stores are in prime retail locations designed to give customers an inclusive, unique and value-focused grocery shopping experience. Founded in 2005 by a fourth generation grocer, Organic Garage is headquartered in Toronto and operates a highly efficient supply chain through its centralized distribution centre. The company is focused on continuing to expand its retail footprint within the Greater Toronto Area. For more information please visit the Organic Garage website at www.organicgarage.com.
For further information please contact:
Evan Clifford, Director
T: (416) 201-9390
E: investor_relations@organicgarage.com
W: www.organicgarage.com
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of Organic Garage, that may cause the actual results, level of activity, performance or achievements of Organic Garage to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the grocery industry. Although Organic Garage has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Organic Garage's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither Organic Garage assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
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