Cannabis Growth Opportunity Corp completes financing for Next Green Wave Holdings
Cannabis Growth Opportunity Corp. (CSE: CGOC) has completed a financing for Next Green Wave Holdings Inc. (CSE: NGW) (OTCQB: NXGWF). CGOC will purchase 11 million shares of NGW at $.25 per share for $2.75 million. At the same time, NGW will purchase $1.25 million shares of CGOC at a price of $1.72 per share.
Both parties agree to hold their shares until February 1, 2020. The net capital raised by NGW is $1.5 million after the investment which NGW management says will enable the company to meet its milestones of production, product roll-outs and sales without additional financing.
This transaction illustrates the flexibility of investment options within CGOC. Starting in June 2018, NGW was an investment in CGOC’s private company portfolio under the mandate of Jamie Blundell until it went public in October 2018. When NGW went public, it was switched to the public company portfolio under the purview of Bruce Campbell who manages this part of the portfolio. The most recent investment would have been done through the public company portfolio which implies Campbell made an independent judgement of the attractiveness of such an investment.
Although I am a surprised that CGOC would issue shares at such a hefty discount to Net Asset Value, the investment in NGW was priced attractively and I believe it will turn out to be a successful investment for CGOC.