SPUD closes $15.5M oversubscribed initial going-public RTO financing

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By Ted Liu

Sustainable Produce Urban Delivery Inc. (SPUD) has raised $15.5 million by way of brokered private placement of unsecured convertible debentures.

On September 30, 2020, SPUD and Rainy Hollow Ventures Inc. (TSX-V: RHV.P) entered into a letter of intent (LOI) pursuant to which Rainy Hollow and SPUD will complete a transaction that will result in a reverse take-over (RTO) of Rainy Hollow by SPUD. The transaction will constitute as SPUD’s going public transaction.

As part of the agreement, SPUD was to raise up to $10 million principal amount of unsecured convertible debentures on or about October 10, 2020.

Canaccord Genuity Corp. and Desjardins Securities Inc. co-led the private placement. Fasken Martineau DuMoulin LLP acted as legal counsel to SPUD.

SPUD also intends to complete a brokered financing for aggregate gross proceeds of at least $25,000,000 consisting of SPUD shares or subscription receipts, at a price to be determined prior to the closing of the RTO transaction.

Completion of the RTO transaction is subject to various conditions including entering into a definitive agreement, the completion of the $25 million concurrent financing by SPUD and obtaining all required regulatory approvals

With operations in Vancouver, Victoria, Kelowna, Calgary and Edmonton, Vancouver based Sustainable Produce Urban Delivery provides an online grocery shopping platform focused on organic and natural foods through SPUD.ca. SPUD.ca offers an online platform through which consumers can order and schedule home delivery of groceries and other essentials.

Sustainable Produce Urban Delivery investors include Walter Capital Partners, Renewal Funds, CIC Capital Ventures, and family offices and private investors.

photo credit: SPUD