Canaccord Genuity Corp, on behalf of a syndicate of underwriters, agreed to purchase 29 million units in the capital of the company at a price of C$0.35 per unit
Namaste Technologies Inc (CVE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) reached an agreement on a bought deal financing worth more than C$10.1 million, the cannabis company announced after the close Thursday.
Canaccord Genuity Corp, on behalf of a syndicate of underwriters, agreed to purchase 29 million units in the capital of the company at a price of C$0.35 per unit.
Each unit includes one common share and one purchase warrant, and each warrant entitles its holder to acquire another share at an exercise price of C$0.47 for a period of 36 months after the offering closes.
READ: Namaste Technologies advances US expansion plans by selling hemp CBD through CannMart.com by collaborating with PeakBirch Logic
The company expects the offering to close on or about January 19, The agreement remains subject to approval from the TSX Venture Exchange.
The net proceeds from the offering will be used for working capital and general corporate purposes, the company said.
Additionally, Namaste has granted the underwriters an option to purchase up to 15% more units for a period after 30 days after closing.
The company expects the units to be offered in each of the provinces of Canada, other than Québec, and may also be offered by way of private placement in the US to qualified institutional buyers, as well as overseas on a private placement or equivalent basis.
Namaste is a cannabis-focused e-commerce technology company based in Toronto. Its mission is to become the one-stop-shop for everything a cannabis user needs.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel