The money from the offering will be used to fund strategic acquisitions, expand Mojave Jane's delivery footprint and for general working capital purposes
Mojave Jane Brands Inc (CSE: JANE) (OTCMKTS:HHPHF) has announced it will proceed with a non-brokered private placement that could raise up to US$8 million.
The company, which is based in Toronto but has a vertically integrated presence in California, will offer up to 32 million units at $0.25 per unit, according to a statement on Wednesday.
Net proceeds from the offering will be used to fund strategic acquisitions, expand Mojave Jane's delivery footprint and for general working capital purposes.
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Under the terms of the offering, Mojave Jane said each unit will consist of one common share in the capital of the company, plus one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one additional share at a price of $0.40 for a period of 24 months from the closing date of the offering.
Closing of the offering is subject to several conditions, including receipt of all necessary corporate and regulatory approvals, including approval from the Canadian Securities Exchange.
All securities issued in the offering will be subject to a statutory holding period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
Mojave Jane offers the Caligold brand of cannabis-infused chocolate, and the company’s US holdings are comprised of assets that include cultivation to scale, branding, packaging, manufacturing and processing.
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