December 17, 2020 — (Vancouver, BC) good natured Products Inc. (the “Company” or “good natured®”) (TSX-V: GDNP) today announced that it has closed its previously announced bought deal private placement (the “Offering”). Canaccord Genuity Corp. acted as lead underwriter and sole bookrunner in connection with the Offering in a syndicate that included Integral Wealth Securities Limited and Paradigm Capital Inc. (the “Underwriters”).
Pursuant to the Offering, the Company issued 8,520,000 common shares in capital of the Company (the “Common Shares”) at an issue price of $0.47 per Common Share (the “Issue Price”) for gross proceeds of $4,004,400.
The Underwriters received a cash commission of $280,280 representing 7.0% of the aggregate gross proceeds of the Offering; 596,340 broker warrants (the “Broker Warrants”) representing 7.0% of the aggregate number of Common Shares issued pursuant to the Offering; and a corporate finance fee of 170,228 Common Shares representing 2.0% of the number of Common Shares issued pursuant to the Offering. Each Broker Warrant shall entitle the holder thereof to acquire one Common Share at the Issue Price for a period of 24 months from the date hereof.
The net proceeds of the Offering are expected to be used for completion of the acquisition of IPF Holdings Ltd. and associated transaction and integration expenses, as disclosed in the Company’s news release of December 1, 2020.
The Common Shares issued pursuant to the Offering, including the Common Shares issued as a corporate finance fee and issuable upon exercise of the Broker Warrants, will be subject to a hold period under applicable Canadian securities laws expiring on April 18, 2021. Insiders of the Company subscribed for a total of 100,000 Common Shares for total gross proceeds of $47,000 under the Offering. Participation by insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101, as the fair market value of the Common Shares issued to such related parties does not exceed 25% of the Company’s market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time. Further details will be provided in a material change report to be filed by the Company subsequent to the dissemination of this press release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “US Securities Act”) or any states securities laws and may not be offered or sold within the United states or to US Persons (as defined in Regulation S under the US Securities Act) unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
The good natured® corporate profile can be found at: investor.goodnaturedproducts.com
About good natured Products Inc.
good natured® is producing and distributing one of North America’s widest assortments of better everyday products® made with the highest possible percentage of renewable, plant-based materials and no BPAs, phthalates or other chemicals of concern potentially harmful to human health and the environment.
With a growing assortment of over 385 products and services, good natured® creates eco-friendly home and business products, food packaging, restaurant/take-out containers, medical and industrial supplies designed to do good for the planet, good for human health and good for business by driving incremental sales, minimizing waste and reducing environmental impact, all bundled up in a fresh and approachable brand.
For more information: goodnaturedproducts.com
On behalf of the Company:
Paul Antoniadis – Executive Chair & CEO
1-877-286-0617 ext. 113
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.