VANCOUVER, British Columbia, Dec. 15, 2015 (GLOBE NEWSWIRE) — Global Gardens Group Inc. (the “Company”) (CSE:VGM) is pleased to announce that it has closed the first tranche of its private placement, as previously announced on October 30, 2015, through the issuance of 2,511,880 units at $0.25 per unit for gross proceeds of $627,970. The offering price of the units was at a 47% premium to the current market price of the Company’s common shares.
Each unit consists of one common share and one common share purchase warrant exercisable at $0.40 until December 14, 2020, 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.
In connection with the private placement, the Company paid finder’s fees of $51,500 in cash and 206,000 finder’s warrants exercisable to acquire one common share of the Company at a price of $0.40 per share until December 14, 2017, 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 finder’s warrants by giving notice to the holder of the finder’s warrants that the finder’s warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than 5 business days from the date notice is given.
Proceeds of the private placement will be used for general working capital purposes.
About Veggemo
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.
CONTACT: For further information, please contact: Investor Relations Transcend Capital Inc. Etienne Moshevich T: 604.681.0084 E: [email protected]