Good Natured Products (TSXV:GDNP) raises over $4M for acquisition

• Bioplastics company good natured Products (GDNP) has closed its bought deal private placement after raising over C$4 million in proceeds
• Through the offering, the company issued 8.52 million common shares, at a price of $0.47 per share
• The placement’s underwriters received a seven per cent cash commission of the proceeds, broker warrants, and a corporate finance fee
• The proceeds will help complete the company’s acquisition of IPF Holdings, and cover related transaction and integration expenses
• Good natured Products is down 13.33 per cent and is currently trading for $0.91 per share

Bioplastics company good natured Products (GDNP) has closed its bought deal private placement after raising over C$4 million in proceeds.

The offering was conducted by a syndicate of underwriters, led by lead underwriter and sole bookrunner Canaccord Genuity Corp. The syndicate included companies such as Integral Wealth Securities and Paradigm Capital. 

Through the placement, good natured Products issued 8.52 million of its common shares, at an issue price of $0.47 per share. Insiders of the company subscribed for a total of 100,000 common shares, producing exactly $47,000 of the proceeds. 

The underwriters received a commission consisting of cash, broker warrants, and a corporate finance fee. In total, the seven per cent commission on the offering’s total proceeds produced a cash amount of $280,280 for the underwriters.

The seven per cent commission on the number of common shares issued through the placement resulted in them receiving 596,340 broker warrants. Each of these warrants will allow the holders to purchase another common share in good natured Products at the issue price, within 24 months of this date.

Finally, the underwriters also received a corporate finance fee of 170,228 common shares.

All common shares issued through the offering are subject to a hold period which will expire on April 18, 2021. This applies not only to the shares issued through the private placement, but also to shares issued through the underwriters’ corporate finance fee and exercised broker warrants.

Good natured Products will primarily use the proceeds of the offerings to complete its planned acquisition of IPF Holdings. Some funds may also go towards covering any expenses associated with the acquisition transaction and company integration.

Good natured Products is down 13.33 per cent and is trading for $0.91 per share, as of 3:10pm EST.