CannaRoyalty Corp. (CSE:CRZ) (OTCQX:CNNRF) announced today that it has closed its previously announced offering , on a “bought deal” basis, pursuant to a short form prospectus, of an aggregate of 3,750,000 units of the Company at a price of $4.00 Per Unit for aggregate gross proceeds to the Company of $15.0 million.

Each Unit consisted of one common share and one-half of one common share purchase warrant of the Company. Each Warrant is exercisable to acquire one Common Share until April 13, 2021 at an exercise price of $5.50 per common share, subject to adjustment in certain events. The Warrants will be available to trade under the ticker CRZ.WT. In the event that the volume-weighted average trading price of the Common Shares exceeds $8.00 for 15 concurrent trading days following the closing date of the Offering, the Company is entitled to accelerate the exercise period of the Warrants to a period ending not less than 21 days from the date written notice of such Acceleration Trigger is provided to Warrant holders. 

The Offering was led by Canaccord Genuity Corp. and included Beacon Securities Limited, Sprott Private Wealth LP, Mackie Research Capital, INFOR Financial Inc. and AltaCorp Capital Inc. In connection with the Offering, the Company has granted the Underwriters an over-allotment option to purchase up to an additional 562,500 Units at the Offering Price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the Offering. The Underwriters may elect to exercise the over-allotment option to acquire additional Units, Common Shares and/or Warrants. If this option is exercised in full for Units, an additional $2.25 million in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be $17.25 million 

The Company intends to use the net proceeds from the Offering to repay debt obligations, acquisition financing, continued funding of the development of the Company’s existing holdings and other general corporate and working capital purposes. If the Over-Allotment Option is exercised, the Company intends to use the additional net proceeds therefrom for working capital and general corporate purposes. 

The securities being offered have not been, nor will they be, registered under the U.S. Securities Act as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About CannaRoyalty Corp. 

CannaRoyalty is an active investor and operator in the legal cannabis industry. Our focus is building and supporting a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt, licensing agreements and its own branded portfolio.