Sugarbud Announces Closing of $4.6 Million Bought-Deal Public Offering, Including Full Exercise of Over-Allotment Option

March 16, 2021 9:50 AM EDT

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CALGARY, Alberta, March 16, 2021 (GLOBE NEWSWIRE) -- Sugarbud Craft Growers Corp. (TSXV:SUGR, SUGR.WT, SUGR.WS, SUGR.DB) ("Sugarbud" or the "Company") is pleased to announce the closing of its previously-announced bought-deal public offering (the “Offering”) pursuant to which the Company issued 76,670,500 units of the Company (the “Units”) at a price of $0.06 per Unit (the “Offering Price”) for aggregate gross proceeds to the Company of $4,600,230, including the full exercise of the over-allotment option.

The Offering was led by Mackie Research Capital Corporation as the sole underwriter and sole bookrunner (the “Underwriter”).

The net proceeds from the Offering will be used for additional processing and production equipment purchases, facility upgrades, further new product development, working capital and general corporate purposes, including the national launch of Sugarbud’s expanded portfolio of Cannabis 2.0 products.

"We are very pleased with the result of this bought-deal public offering and view the outcome as yet another strong vote of confidence in the combined leadership of our management team, our focused business model, our execution to date and our prospects for success moving forward. Sugarbud remains very focused on revenue creation and this latest financing will provide the Company with additional valuable resources to accelerate our growth plans," stated Sugarbud's Chief Executive Officer, John Kondrosky.

Each Unit is comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.08 at any time until March 16, 2024.

The Offering is subject to the final approval of the TSX Venture Exchange (the "TSXV").

In consideration for the services provided by the Underwriter, the Company issued 5,366,935 non-transferrable warrants to the Underwriter, each such warrant entitling the Underwriter to purchase one Unit at a price of $0.06 at any time until March 16, 2024.

About Sugarbud

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.

John KondroskyChief Executive OfficerSugarbud Craft Growers Corp.Phone: (604) 499-7847E-mail: johnk@sugarbud.caInvestor Relations ContactChris MoulsonChief Financial OfficerSugarbud Craft Growers Corp.Tel: (778) 388-8700E-mail: chrism@sugarbud.ca

Websites:http://www.sugarbud.ca/

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: the use of proceeds from the Offering; the listing of the Warrants; and the business plan of the Company, generally, including revenue creation and growth plans. 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.

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Source: Sugarbud Craft Growers Corp.


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