CALGARY, Alberta, April 13, 2021 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.DB, SUGR.WR, SUGR.WS, SUGR.WT) (OTCQB: SBUDF) (“Sugarbud” or the “Company“) is pleased to announce that after successfully completing the application process, the Company has been approved by FINRA for quotation in the U.S. The Company’s common shares have been upgraded from the OTC® Pink Open Market to the OTCQB Venture Market effective today, April 13th, 2021, at the opening of the market under the stock symbol “SBUDF” and will remain listed on the TSX Venture Exchange under the ticker symbol “SUGR”. The Company is also in the process of completing its application for eligibility with the Depository Trust Company (“DTC”).
“Being quoted on the OTCQB market will significantly enhance our visibility and make the Company accessible to a much broader range of U.S. investors. The quotation on the OTCQB market is expected to increase liquidity by providing current and potential investors with a transparent and easily accessible trading platform where they can find Real-Time quotes and market information on the Company,” stated Sugarbud CEO, John Kondrosky.
The OTCQB Venture is the premier marketplace for companies that are committed to providing a high-quality trading and information experience for their U.S. investors. Qualifying for approval to trade on the OTCQB requires a company to be current on disclosure obligations, to pass a minimum bid price test, and to provide an annual company verification and management certification process. The OTCQB quality standards create a solid baseline of transparency, as well as the technology to improve the information and trading experience for investors.
The Company also announces that, pursuant to the terms and conditions of its stock option plan, it has granted a total of 12,800,000 stock options to purchase common shares of Sugarbud (“Shares”) to certain directors, officers and advisors of Sugarbud. The options expire five years from the date of grant and are exercisable at a price of $0.05 per Share. The options vest as to one third on the grant date and one third on each of the first and second anniversaries of the grant date.
The Company also announces that it has entered into shares for services agreements with certain directors and an advisor of the Company, pursuant to which Sugarbud will issue a total of 2,650,000 Shares at a deemed price of $0.05 per Share in satisfaction of accrued portions of the cash retainers owing to such persons in the aggregate amount of $132,500 (the “Transaction“). The Shares to be issued in connection with the Transaction will represent approximately 0.47% of the issued and outstanding Shares of Sugarbud on a post-Transaction basis.
The Transaction is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Company is relying on an exemption from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the Shares issued under the Transaction does not exceed 25% of the market capitalization of the Company.
The Transaction is subject to the approval of the TSX Venture Exchange (the “TSXV”) and the Shares issued in connection therewith will be subject to a statutory 4-month hold period.
Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Our vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.
The Sugarbud Craft Cannabis Collection offers consumers “Hand-Crafted Cannabis for a New Era”. The Company is proudly Albertan and is proud to share Western Canada’s long tradition of exceptional craft cannabis with the most discerning of enthusiasts. Sugarbud strives to define the intersection of product craftsmanship, quality, and value for consumers in the Canadian craft cannabis space.
Address: Suite 620, 634 – 6th Avenue S.W., Calgary, Alberta T2P 0S4
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: Sugarbud’s assessment of future plans and operations and the Transaction, including TSXV approval. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Sugarbud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Sugarbud believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected, Sugarbud may not obtain the required approvals from Health Canada, including with respect to an amended sales license; demand for Sugarbud’s products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; failure to maintain consumer brand recognition and loyalty of customers; reliance on relationships with wholesalers and retailers for distribution of products and failure to maintain strategic business relationships; intense competition, including from illicit sources; uncertainty and continued evolution of markets; product liability litigation; reliance on information technology; infringement on intellectual property; failure to benefit from partnerships; sensitivity of end-customers to increased sales taxes and economic conditions; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; risks inherent in the agricultural business, such as insects, plant diseases and similar agricultural risks which can have a significant impact on the size and quality of the harvest of cannabis crops; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by Sugarbud with securities regulatory authorities. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remain unknown, rapid spread of the COVID-19 virus may have a material adverse effect on global economic activity, and can result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to Sugarbud’s most recent annual information form and management’s discussion and analysis for additional risk factors relating to Sugarbud, which can be accessed under Sugarbud’s profile on www.sedar.com. Except as required by applicable laws, Sugarbud does not undertake any obligation to publicly update or revise any forward-looking statements.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.