CVW Sustainable Royalties Announces Closing of Upsized Private Placement Totalling $50 Million

Executive Summary

• CVW Sustainable Royalties Inc. closed an upsized brokered private placement, issuing 64,102,565 units at $0.78 per unit for gross proceeds of $50.0 million.
• The financing will fund future royalty transactions, related diligence and closing expenses, and general corporate purposes, strengthening the balance sheet.
• Insiders (including special advisor Pierre Lassonde) purchased approximately $12.6 million of units; the company paid a cash commission of $420,404 to agents.

Key Details

• Units Issued: 64,102,565 total (brokered and non‑brokered portions).
• Issue Price: $0.78 per unit → Gross proceeds: $50.0 million.
• Unit Composition: 1 common share + 1 Common Share purchase warrant.
• Warrant Terms: Exercise price $0.95 per warrant; two‑year term from issuance; acceleration clause if VWAP > $1.20 for 30 consecutive trading days (notice period 20 days).
• Lead Agent: Stifel Nicolaus Canada Inc.; co‑bookrunner with Paradigm Capital Inc. (Agents).
• Insider Subscriptions:
• Total insider units: 8,241,880 → $6.428 million.
• Pierre Lassonde subscription: 7,965,000 units.
• Combined insider proceeds ≈ $12.6 million (treated as a related‑party transaction under MI 61‑101).
• Commission Paid to Agents: $420,404 (6.0% of gross proceeds from agent‑sourced purchasers).
• Finder Shares Issued: 2,217,373 common shares at a deemed price of $0.78 per share.
• Regulatory Status: Conditionally approved by the TSX Venture Exchange; securities subject to a statutory hold period of four months and one day.
• Use of Proceeds: Fund future royalty acquisitions, associated diligence/closing costs, and general corporate purposes.

Notable Quotes

“We are pleased to complete this $50 million financing and appreciate the strong support from our investors including our Board and Pierre Lassonde. This capital strengthens our balance sheet and positions us to execute on our pipeline of sustainability‑focused royalty opportunities and deliver value to shareholders.” – Akshay Dubey, CEO

Materiality Assessment: Material – Positive** (significant financing that materially enhances the company’s capital structure and growth capacity).