The company expects to use the net proceeds from the offering for the further development and expansion of its business and for working capital and general corporate purposes
Namaste Technologies Inc. (CVE:N), a leading platform for cannabis products, accessories, and education announced that it has closed its previously announced "bought deal" public offering for total gross proceeds of $23,023,000.
The group said it sold 65,780,000 units of the company at a price of C$0.35 per unit under the offering, including 8,580,000 units sold under the exercise in full of the underwriters' over-allotment option.
The company expects to use the net proceeds from the offering for the further development and expansion of its business and for working capital and general corporate purposes.
READ: Namaste Technologies bolsters working capital with amended C$20M bought deal financing
Each unit in the offering consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of C$0.47 each until January 19, 2024.
Canaccord Genuity, as lead, and Haywood Securities acted as underwriters for the offering.
The underwriters received a cash underwriting fee equal to 6.0% of the aggregate gross proceeds of the offering and were issued compensation options equal to 6.0% of the aggregate number of units sold. Each compensation option is exercisable until January 19, 2023, to acquire one common share of the company at an exercise price of $0.35.
Headquartered in Toronto, Canada, Namaste Technologies is a leading online platform for cannabis products, accessories, and responsible education. The company's 'everything cannabis store', CannMart.com, provides medical customers with a diverse selection of hand-picked products from a multitude of federally licensed cultivators, all on one convenient site.
The company also distributes licensed and in-house branded cannabis and cannabis-derived products to recreational consumers in Canada through a number of provincial government control boards and retailing bodies and facilitates licensed cannabis retailer sales online in Saskatchewan. Namaste's global technology and continuous innovation address local needs in a burgeoning cannabis industry requiring smart solutions.
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