VANCOUVER, British Columbia, Oct. 30, 2015 (GLOBE NEWSWIRE) — Global Gardens Group Inc. (the “Company”) (CSE:VGM) is pleased to announce a proposed non-brokered private placement offering of up to 2,860,000 units at a price of $0.25 per unit to raise gross proceeds of up to $715,000. The offering price of the units is at a 61% premium to the current market price of the Company’s common shares.
Each unit will consist of one common share and one common share purchase warrant exercisable at $0.40 for a period of 60 months, provided that if the closing price of the Company’s shares on any stock exchange or quotation system on which the shares are then listed or quoted is equal to or greater than $0.80 for a period of 10 consecutive trading days, the Company will have the right to accelerate the expiry of the warrants by giving notice to the holders of the warrants that the warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than 10 business days from the date notice is given.
The private placement is subject to all necessary regulatory and stock exchange approvals. All securities issued in connection with the private placement will be subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
The Company intends to use the proceeds from the private placement for general working capital purposes.
The Veggemo product line is the first and only non-dairy beverage to originate from vegetables and is Global Garden Group’s (VGM) showcase product for the dairy-free industry. The Dairy-free industry continues to witness dynamic growth led by the development of plant-based food and beverages.
Driven by shifting consumer behavior Health & Wellness food and beverage companies have become a popular acquisition target for many multi-national corporations. Most recently Vega, the provider of plant-based shakes and supplements, was successfully sold to WhiteWave Foods for $550 million representing a 5.5x revenue multiple.
About Global Gardens Group
Global Gardens Group is comprised of a highly experienced management team and board that have provided senior leadership to many consumer brands including: Neilson Dairy, Ben & Jerry’s and Haagen Dazs ice cream, Gillette, P&G, Cadbury Schweppes, Sunkist, Dole, Primo pasta and Lululemon.
Certain disclosure in this release, including statements regarding the terms of the private placement, the possible completion of the private placement and the intended use of proceeds from the private placement, may constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required regulatory approvals to complete the Company’s planned private placement and that the Company is able to complete the private placement. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks are detailed from time to time in the Company’s filings with the appropriate securities commissions, and may include, among others, that the private placement will not complete, market conditions, and delays in obtaining or failure to obtain required regulatory approvals or financing. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: For further information, please contact: Investor Relations Transcend Capital Inc. Etienne Moshevich T: 604.681.0084 E: firstname.lastname@example.org