The company said it intends to use the net proceeds to purchase additional biomass, packaging materials and equipment, product development and for working capital and general corporate purposes
Heritage Cannabis Holdings Corp () () (FRA:2UE) reported that it has completed its previously-announced overnight marketed public offering of 98.9 million company units, at a price of $0.14 per unit, for total gross proceeds of C$13.8 million.
The company said it intends to use the net proceeds of the offering to purchase additional biomass, packaging materials and equipment, product development and for working capital and general corporate purposes.
Heritage Cannabis noted that a director and officer of the company participated in the offering, adding that further details will be included in a material change report that will be filed by Heritage in connection with the offering’s completion.
READ: Heritage Cannabis generates FY2020 revenue of $9.3M on third-party contract sales
Each unit of the equity financing consisted of one common share of the company plus one common share purchase warrant, exercisable for one common share at any time for a period of 24 months following the closing of the offering at an exercise price of $0.21 per share.
The warrants are expected to begin trading on the Canadian Securities Exchange (CSE) under the symbol ‘CANN.WT.A’ on March 17.
The offering was conducted on a best efforts basis by a syndicate of agents co-led by Canada Corporation and Cormark Securities Inc, together with Corp. The company said it paid the agents a cash commission equal to 7% of the gross proceeds of the offering in addition to broker warrants to purchase up to 7% of the number of units sold under the offering.
Heritage Cannabis is a vertically-integrated cannabis provider that currently has two Health Canada-approved licensed producers, through its subsidiaries Voyage Cannabis Corp and CannaCure Corp, both of which are regulated under the Cannabis Act Regulations.
The company recently acquired Canadian recreational and medical cannabis company Premium 5 Ltd, which Heritage Cannabis expects will make it a leader in the extract and extract derivatives market, as Premium 5 is a premium provider of Cannabis 2.0 hydrocarbon and solventless concentrates in Canada.
Contact Sean at sean@proactiveinvestors.com