Cannabis retailer Green Growth inks first equity raise

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Ohio-based Green Growth Brands, which last month agreed to buy a multistate operator that sells both medical and recreational marijuana, completed an initial equity raise for 50.2 million Canadian dollars ($37.8 million).

Green Growth said in a statement that the raise is intended to fuel expansion, much like the company’s $310 million purchase in July of Moxie. Moxie, based in Long Beach, California, has 250 retail outlets and dispensaries in five states.

Green Growth plans to combine the CA$50 million with a CA$102.7 million backstop commitment on Aug. 14 from a family of majority shareholders, the Schottenstein family, owner of some of America’s largest fashion retailers.

Green Growth will use the proceeds of the raise toward funding:

  • The balance of the cash purchase price for the acquisition of Nevada Organic Remedies.
  • The cash portion of the purchase price to complete the acquisition of Henderson Organic Remedies.
  • The deferred cash compensation and other fees for the acquisition of Spring Oaks Greenhouses.
  • Ongoing capital expenditures and general corporate purposes.

The raise was completed by underwriters led by Canaccord Genuity Corp. and including Eight Capital, Cormark Securities, GMP Securities, Paradigm Capital, Beacon Securities and Haywood Securities.

Green Growth, which sells topicals and personal-care items, trades on the Canadian Securities Exchange as GGB and on U.S. over-the-counter markets as GGBXF.

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