/Not for distribution to U.S. news wire
services or dissemination in the United
States/
EDMONTON, AB, June 16,
2022 /CNW/ - Nova Cannabis Inc. (the "Company"
or "Nova") (TSX: NOVC) today announced it has filed a
preliminary short-form base shelf prospectus with the securities
commissions in each of the provinces and territories of
Canada (the "base shelf
prospectus").
The base shelf prospectus will, when made final, allow Nova and
certain of its securityholders to qualify the distribution by way
of prospectus in Canada of up to
$35 million of common shares,
subscription receipts, warrants, debt securities, units or any
combination thereof, during the 25month period that the base shelf
prospectus is effective. The base shelf prospectus is intended to
provide Nova with financing flexibility and additional options for
quicker access to equity and/or debt markets as it continues to
pursue its strategic plan. A copy of the base shelf
prospectus can be found on SEDAR at www.sedar.com.
The specific terms of any offering of securities under the base
shelf prospectus will be established in a prospectus supplement,
which will be filed with the applicable securities commissions and
similar regulatory authorities in connection with any such
offering. The net proceeds from the sale of any securities issued
under the base shelf prospectus could have a wide range of uses
including to finance future growth opportunities including
acquisitions and investments, to finance capital expenditures, to
reduce outstanding indebtedness, for working capital purposes or
for general corporate purposes. There is no certainty that any
securities will be offered or sold under the base shelf prospectus
within the 25-month period that it is effective.
Additionally, Sundial Growers Inc. (Nasdaq: SNDL) has agreed to
increase the total principal amount available to Nova Cannabis
Stores Limited Partnership, a wholly-owned subsidiary of Nova,
under the uncommitted revolving credit facility with Sundial (the
"Credit Facility") from $10
million to $15 million. As at
the date of this announcement, Nova has drawn on the Credit
Facility in an aggregate principal amount of $7.5 million.
"The additional access to capital provides Nova with the
opportunity to continue to execute its disruptive and market
leading strategy in the Canadian cannabis retail industry," said
Marcie Kiziak, Chief Executive
Officer of Nova.
This news release does not constitute an offer to sell
securities, nor is it a solicitation of an offer to buy securities,
in any jurisdiction. This news release does not constitute an offer
of securities for sale in the United
States and the securities referred to in this news release
may not be offered or sold in the United
States absent registration or exemption from
registration.
ABOUT NOVA CANNABIS INC.
Nova Cannabis Inc. (TSX: NOVC) is one of Canada's largest and fastest-growing cannabis
retailers with a goal of disrupting the cannabis retail market by
offering a wide range of high-quality cannabis products at
every-day best value prices. The Company currently owns or operates
eighty (80) locations across Alberta, Ontario, and Saskatchewan, primarily under its "Value Buds"
banner. Additional information about Nova Cannabis Inc. is
available at www.sedar.com and the Company's website at
www.novacannabis.ca.
FORWARD-LOOKING
STATEMENTS
This news release contains information that, to the extent that
they are not historical fact, may constitute "forward-looking
information" or "forward-looking statements" within the meaning of
applicable securities legislation (collectively "forward-looking
statements"). Forward-looking statements are typically,
but not always, identified by the use of words such as "continue",
"anticipate", "will", "expect", "project", "to be", "objective",
"should", "plan", "intention", and similar words, including
negatives thereof, or other similar expressions concerning matters
that are not historical facts. All statements and information other
than statements of historical fact contained in this news release
are forward-looking statements. These forward-looking statements
include statements about the filing of the base shelf prospectus
and the offering or sale of any securities thereunder.
With respect to forward-looking statements contained in this
news release, the Company has made certain assumptions regarding,
among other things, the receipt from the securities commissions and
similar regulatory authorities in the provinces and territories of
Canada for a final short form base
shelf prospectus and the offering of any securities thereunder; the
Company's ability to identify locations for, construct and open,
new stores and the costs related thereto; government regulations
and applicable laws will not change in a manner adverse to the
Company; receipt of necessary regulatory approvals to open new
stores; demand for the products the Company sells; other factors
that will drive sales growth in the "Value Buds" banner;
availability of acquisition opportunities; sustainability of
competitors' businesses and competition in the retail cannabis
industry, including from the illicit cannabis market; consumer
demands; and other factors that influence consumer behaviour.
Although the Company believes the expectations reflected in the
forward-looking-statements, and the assumptions on which such
forward-looking statements are made, are reasonable, especially
given the unprecedented uncertainty of the full extent and impact
of COVID-19, there can be no assurance that such expectations and
assumptions will prove to be correct. Readers should not place
undue reliance on forward-looking-statements included in this news
release. Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that
may cause actual performance and financial results to differ
materially from any estimates, forecasts or projections. These
risks and uncertainties include, among other things, the duration
and severity of the COVID-19 pandemic on the business, operations
and financial condition of the Company; the risk that Nova will be
unable to execute its strategic plan and growth strategy as planned
without significant adverse impacts from various factors beyond its
control; dependence on suppliers; potential delays or changes in
plans with respect to capital expenditures and the availability of
capital on acceptable terms; risks inherent in the retail cannabis
industry; competition for, among other things, customers, supply,
capital and skilled personnel; changes in labour costs and markets;
incorrect assessments of the value of acquisitions; general
economic and political conditions in Canada (including Alberta, Saskatchewan and Ontario), and globally; industry conditions,
including changes in government regulations; fluctuations in
foreign exchange or interest rates; unanticipated operating events;
failure to obtain regulatory and third-party consents and approval
when required; changes in tax and other laws that affect Nova and
our shareholders; the potential failure of counterparties to honour
their contractual obligations; stock market volatility; and the
other factors described in the Company's public filings available
at www.sedar.com. Readers are cautioned that this list of risk
factors should not be construed as exhaustive.
The forward-looking statements contained in this news release
are made as of the date hereof. Except as expressly required by
applicable securities legislation, Nova does not undertake any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking statements contained in this news
release are expressly qualified by this cautionary statement.
SOURCE Nova Cannabis Inc.