The company said it plans to use the net proceeds to purchase additional biomass, packaging materials and equipment, product development and for general corporate purposes
Heritage Cannabis Holdings Corp () () (FRA:2UE) reported that it has filed a preliminary short form prospectus with the securities commissions in the provinces of British Columbia, Alberta, Ontario and Nova Scotia in connection with an overnight marketed public offering of units of the company.
Heritage Cannabis said it plans to use the net proceeds to purchase additional biomass, packaging materials and equipment, product development and for working capital and general corporate purposes.
The company noted that the units being offered will consist of one common company share plus one common share purchase warrant, allowing the holder to purchase one common share of the company at any time for a period of 24 months following closing of the offering.
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Heritage Cannabis added that the final pricing of the units, the warrant exercise price and the determination of the number of units to be sold pursuant to the offering will be determined in the context of the market before filing of the final short form prospectus in respect of the offering.
The offering will be conducted on a "best efforts" basis by a syndicate of agents co-led by Canada Corporation and Cormark Securities Inc, which will receive a cash commission equal to 7.0% of the gross proceeds of the offering, together with broker warrants to purchase up to 7.0% of the number of units sold in the offering.
The offering is expected to close on or about February 17, 2021, or such other date as the company and the agents may agree.
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.
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