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MONTREAL, July 06, 2021 (GLOBE NEWSWIRE) -- GURU Organic Energy Corp. (TSX: GURU) (“GURU” or the “Company”) is pleased to announce it has closed its previously announced bought deal public offering (the “Offering”), pursuant to which a syndicate of underwriters co-led by Stifel GMP and CIBC Capital Markets (together, the “Co-Lead Underwriters”), and including Echelon Wealth Partners Inc., Laurentian Bank Securities Inc. and Scotia Capital Inc. (collectively with the Lead Underwriter, the “Underwriters”) purchased an aggregate of 3,287,500 common shares of the Company (the “Offered Shares”) at a price of $16.00 per Offered Share (the “Offering Price”) of which 1,100,000 Offered Shares were purchased from the Company (the “Treasury Shares”), and an aggregate of 2,187,500 Offered Shares (the “Secondary Shares”) were purchased from Messrs. Joseph Zakher, Founder and Executive Chairman of the Company, Eric Graveline, Director of the Company, and Carl Goyette, President and Chief Executive Officer of the Company (collectively, the “Selling Shareholders”), for gross proceeds of $52,600,000.
The Underwriters have also exercised the option (the “Over-Allotment Option”) granted to the Underwriters to purchase from the Selling Shareholders up to an additional 493,125 Secondary Shares (the “Over-Allotment Shares”) at the Offering Price. The Underwriters have purchased 493,125 Over-Allotment Shares from the Selling Shareholders pursuant to the full exercise of the Over-Allotment Option, representing additional gross proceeds of $7,890,000 from the Offering.
Concurrent with the Offering, the Company is pleased to announce it has closed its previously announced brokered private placement of 1,997,594 common shares, at the Offering Price, for aggregate gross proceeds of $31,961,504, to a group of institutional investors (the “Private Placement”).
The aggregate gross proceeds of the Offering (including the full exercise of the Over-Allotment Option) and Private Placement are of $92,451,504, of which $49,561,504 are gross proceeds to the Company.
The Company intends to use the net proceeds from the Offering of Treasury Shares and the concurrent Private Placement for marketing and selling expenses under, and in connection with the PepsiCo Distribution Agreement, an exclusive long-term national distribution agreement in Canada with PepsiCo Beverages Canada for GURU’s energy drinks, as well as sales and marketing expenses, brand awareness and market expansion costs in the United States.
Carl Goyette, President and CEO of GURU, commented: “We are delighted by the success of and interest in the Offering, and look forward to the start of our distribution relationship with PepsiCo Beverages Canada, as we pursue our expansion plans in Canada and the U.S.”
Prior to the Offering, Messrs. Zakher and Graveline, two of the Selling Shareholders, respectively held, directly or indirectly, 7,648,636 and 8,219,268 common shares of the Company, representing respectively 26.16% and 28.11% of the then issued and outstanding common shares of the Company. Following the completion of the Offering, Messrs. Zakher and Graveline respectively hold, directly or indirectly, 6,499,796 and 7,070,428 common shares of the Company, representing respectively 20.10% and 21.87% of the Company’s issued and outstanding common shares.
The Selling Shareholders have entered into lock-up agreements for a period of 90 days from the date of closing of the Offering prohibiting their disposition of securities of the Company, subject to certain exceptions. The Selling Shareholders participated in the Offering and sold the Secondary Shares for general portfolio and investment purposes and may engage in transactions in or with respect to securities of the Company from time to time depending on a number of factors. For further information and to obtain a copy of the early warning report to be filed under applicable Canadian securities laws in connection with the foregoing matters, please see the Company’s profile on SEDAR at www.sedar.com or contact Carl Goyette President and Chief Executive Officer of the Company at the below coordinates. The Company’s head and registered office is located at 602-7236 Waverly Street, Montreal, Québec, H2R 0C2.
About GURU
GURU Organic Energy Corp. (TSX: GURU) is a dynamic, fast-growing beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink. The Company markets organic energy drinks in Canada and the United States through a distribution network of more than 21,000 points of sale, and through guruenergy.com and Amazon. GURU has built an inspiring brand with a clean list of organic plant-based ingredients. Its drinks offer consumers good energy that never comes at the expense of their health. The Company is committed to achieving its mission of cleaning up the energy drink industry in Canada and the United States. For more information, go to www.guruenergy.com or follow us @guruenergydrink on Instagram and @guruenergy on Facebook.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of applicable Canadian securities legislation. Such forward-looking statements include, but are not limited to, information with respect to our objectives and the strategies for achieving those objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements are typically identified by the use of words such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", or "continue", although not all forward-looking statements contain these words. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-looking statements are based on assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. Those risks and uncertainties include the following: continued uncertainty in the financial markets; an economic downturn; adverse changes in general economic or political conditions; the COVID-19 pandemic; fluctuations in foreign currency exchange rates; increased competition; reliance on energy drinks as our sole source of revenues; changes in consumer preferences; the changing retail landscape; significant changes in government regulation; criticism of energy drink products and/or the energy drink market; reliance on co-packers to manufacture our products; our ability to maintain good relations with our existing customers; increases in costs and/or shortages of raw materials, ingredients, fuel and/or co-packing; failure to accurately estimate demand for our products; loss of intellectual property rights; our ability to retain senior management or to maintain brand image or product quality; climate change; our ability to achieve and manage growth; conflicts of interest; litigation; and catastrophic events. Certain assumptions were made in preparing the forward-looking statements concerning availability of capital resources, business performance, market conditions and consumer demand. Consequently, all of the forward-looking statements contained herein are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained herein are provided as of the date hereof, and we do not undertake to update or amend such forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.
For further information, please contact:
GURU Organic Energy
Investors
Carl Goyette, President and CEO
Ingy Sarraf, Chief Financial Officer
514-845-4878
investors@guruenergy.com
Media
Lyla Radmanovich
PELICAN PR
514-845-8763
media@rppelican.ca