GreenSpace Brands has closed a second tranche of a C$6.5 million investment from Pender Growth Fund and PenderFund Capital Management. As a result, PenderFund affiliates have become a “control person,” with a 27.5 percent interest in the company and the right to appoint a majority of directors. Based in Toronto, GreenSpace develops, markets and sells natural food products.
TORONTO, March 30, 2020 /CNW/ – GreenSpace Brands Inc. (the “Company”) (TSXV: JTR) is pleased to announce that, further to its news releases of February 19 and 26, 2020, it has closed the second tranche of its non-brokered private placement (“Private Placement”), subject to final approval of the TSX Venture Exchange (“TSXV”). The Company received shareholder approval and conditional approval from the TSXV for PenderFund Capital Management Ltd. (“Pender”) to become a “control person” in the Company by holding, directly or indirectly, a greater than 20% equity stake in the Company. Pender also retains the right to appoint a majority of the directors of the Company. Consequently, effective upon closing of the second tranche of the Private Placement, Michael Lovsin and Nick Dean have both resigned as members of the Board of Directors and John Kelly Edmison has been appointed by Pender as the 5th Director of the Company and the 3rd individual to be nominated by Pender to the Board of Directors. The 3 nominees of Pender are Paul Henderson, John Kelly Edmison and Tracy Tidy joining Matthew von Teichman and Mike LeClair as the other Directors. Both the change of the Board of Directors and the 27.5% of the Common Shares of the Company now owned by Pender represent a Change of Control in the Company according to TSXV rules.
The second tranche of the Private Placement (“Second Tranche”) consists of subscriptions of 39,244,452 Common Shares in the capital of the Company (“Common Shares”), at a price of $0.065 per Common Share for gross proceeds of $2,550,889. Pender, through investment funds managed by Pender, subscribed for 37,705,991 Common Shares at a price of $0.065 per Common Share for gross proceeds of $2,450,889 in the Second Tranche. Pender, through investment funds managed by Pender, beneficially owns, or controls or directs, directly or indirectly, 63,699,000 Common Shares representing approximately 27.5% of the Company. Under the terms of the Private Placement, the Company has issued an aggregate 100 million Common Shares at a price of $0.065 for aggregate gross proceeds of $6.5 million.
The Common Shares issued in the Second Tranche are subject to a statutory hold period of four months plus a day from the closing date as prescribed by the TSXV and applicable securities laws.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About GreenSpace Brands Inc.
GreenSpace is a Canadian-based brand ideation team that develops, markets and sells premium natural food products to consumers across North America. GreenSpace owns Love Child, a producer of 100% organic food for infants and toddlers made with the purest, natural and most nutritionally-rich ingredients, Central Roast, a clean snacking brand featuring a wide assortment of nut and seed mixes, CEDAR, a Canadian based Cold Press Juice business and GO VEGGIE, one of the leaders in the US plant-based cheese market. All brands are wholly owned and retail in a variety of natural and mass retail grocery locations across Canada.
For more information, visit www.greenspacebrands.ca. GreenSpace’s filings are also available at www.SEDAR.com.