In the latest financing, the group issued over 9.9 million units at C$0.28 each to raise gross proceeds of C$2,784,320
Corp () (OTCMKTS:PEMTF) said it has raised around an additional C$2.8 million via a private placing, having already brought in C$1.72 million earlier this month from another offering.
In the latest financing, the group issued over 9.9 million units at C$0.28 each to raise C$2,784,320 gross.
READ: Mota Ventures achieves triple-digit increase in March revenue on strong demand for its CBD products
When combined with the earlier offering completed by the company on April 1, it has raised gross proceeds of $4,504,320, the CBD-focused firm said in a statement.
"The company anticipates utilizing the proceeds of the offering to further develop and market products in North America and Europe using its ecommerce sales channels, to satisfy compensation obligations owing to employees based on services provided to the company and the satisfaction of performance metrics and for general working capital purposes," it added.
As with the previous placing, each unit consists of one company share and one share purchase warrant, which is exercisable to acquire a further share for C$0.38 for 24 months.
Mota aims to become a vertically integrated global CBD brand. Its plan is to cultivate and extract CBD into high-quality value-added products from its Latin American operations and distribute it both domestically and internationally.
On Monday this week, the group reported that demand for its CBD products had helped it achieve significant revenue growth in March.
The firm told investors that its First Class CBD brand garnered sales of C$4,290,000, a 235% year-over-year increase, with related expenses of C$4,240,000.
Mota added that customer acquisition expenses for March 2020 included one-time costs of about C$1,160,000 associated with the introduction of its new line of Immune Support and CBD products.
The Immune Support product line experienced further positive growth contributing to First Class acquiring 20,959 new customers during the month of March, the company revealed.
Shares in Toronto on Wednesday gained almost 3% at C$0.34.
Contact the author at [email protected]