Greenrose Acquisition Corp. (OTC: GNRSU, GNRS, GNRSW) (Greenrose), a special purpose acquisition company targeting companies in the cannabis industry, has entered into agreements for up to $103 million in capital from SunStream Bancorp (“SunStream”), a joint venture initiative sponsored by Sundial Growers Inc. (Nasdaq: SNDL). SunStream’s investment comprises $78 million in a multi-tranche senior secured loan facility and $25 million in unsecured convertible notes.
With the closing of the SunStream financing, and assuming no redemptions of Greenrose stockholders, the company will have up to $276 million to fund its growth strategy. In addition to the senior secured loan and convertible notes, Greenrose reserves the right to raise additional capital in a private placement, in the form of both unsecured convertible notes and common stock, from accredited and institutional investors.
The closing of the SunStream financing is expected to occur simultaneously with Greenrose’s anticipated closing of its de-SPAC business combination and is subject to customary closing conditions.
“We are grateful for the support of our lenders and investors as we continue to work towards closing our business combination,” said Mickey Harley, CEO of Greenrose Acquisition Corp. “This additional capital gives us greater flexibility to execute on our growth objectives, and we will remain focused on creating value for our shareholders as we transition to an exciting and dynamic operating company. Importantly, this investment from and partnership with SunStream is both financially and strategically advantageous to Greenrose. Both Greenrose and SunStream are aligned in closing our Business Combination and continuing the growth of Greenrose.”
Additional terms of the loan and of the private placements are expected to be disclosed in subsequent filings with the U.S. Securities and Exchange Commission (“SEC”).
On Friday, August 6, 2021, Greenrose also intends to provide notification to the escrow custodian of a one-month extension to the closing period for consummating an initial business combination to September 13, 2021.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute a solicitation of votes or proxies in connection with any meeting of the stockholders of Greenrose.
Advisors
Imperial Capital, LLC is acting as capital markets advisors to Greenrose. Gateway Group is serving as communications advisor to Greenrose. Mackenzie Partners and Broadridge Financial Solutions are acting as proxy advisors to Greenrose in connection with its proxy solicitation efforts.
