The company said funds raised are expected to be used for inventory and supplies, capital improvements, expansion of e-commerce platforms and customer base
Shares of cannabis-focused () (OTCQB:NXTTF) jumped on Thursday after the company announced it had closed its oversubscribed bought financing deal of C$51.7 million.
Shares of Namaste skyrocketed up 20.7% at C$2.10 in Toronto, and up 22.2% at US$1.61 in New York.
The company said funds raised are expected to be used for inventory and supplies, capital improvements, expansion of e-commerce platforms and customer base.
READ: Shorting Namaste Technologies' stock getting more difficult, says S3 Partners analyst
The company said a total of 17,250,000 units were sold at a price of C$3.00 per unit for gross proceeds of C$51,750,000. The company said this included the exercise in full of the over-allotment option.
Each unit comprises one common share and three-quarters of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of C$3.15 until October 25, 2023.
The company said it expects the warrants will start trading on the TSXV Venture Exchange on Monday, October 29, 2018 under the symbol: N.WT.A.
Namaste has made headlines in recent months, after the company clashed with short-seller Andrew Left of Citron Research, who said he believes the cannabis company is a "fraud."
READ: Feud between Namaste Technologies and short-seller Andrew Left of Citron Research escalates
Namaste said the most recent offering was completed by a syndicate of underwriters led by Eight Capital and Corp. as co-lead underwriters and joint bookrunners, and including Laurentian Bank Securities Inc.
It added that underwriters received a cash commission equal to 6% of the gross proceeds of the offering and compensation options equal to 6% of the units sold. Each compensation option entitles the holder to purchase one unit at the issue price until October 25, 2023.
The offer is subject to regulatory approval.
Namaste Technologies, through its subsidiaries, operates as a cannabis e-commerce company. The company retails vaporizers and smoking accessories through e-commerce sites in 26 countries.
Contact Katie Lewis at [email protected]
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