On February 21, 2018, Fire Cannabis Inc. d/b/a Slang Worldwide closed a private placement of 22,393,366 special warrants, at a price of $0.75 per special warrant, for aggregate gross proceeds of approximately $16.8 million. Each special warrant entitles the holder to receive, without payment of any further consideration or any further action on the part of the holder, and subject to adjustment in certain circumstances, one unit of Slang on the happening of certain events as set out below. Each unit is comprised of one common share of Slang and one-half of one common share purchase warrant. Each whole warrant is exercisable to acquire one common share of Slang at an exercise price of $1.15 per common share.
The special warrants shall convert into units on the date that is the earlier of: (a) the date that is three business days following Slang receiving a final receipt for a prospectus qualifying the distribution of the units, provided that if Slang is also completing an initial public offering of common shares by way of the prospectus, such date will instead be concurrent with the date of completion of the initial public offering, (b) the date on which the Company completes an RTO event, and (c) the date that is 150 days following the closing date of the private placement.
Cassels Brock acted for the Agents, Canaccord Genuity Corp. and Clarus Securities Inc., with a deal team that included Nancy Choi, Kyle Simpson, and Chad Podolsky (Securities and Cannabis).