Heritage Cannabis Holdings (CANN.C) has announced they have closed their overnight marketed public offering after raising gross proceeds of $13,846,000.

 

The offering involved selling 98,900,000 units at a price of $0.14 per unit. Each unit consisted of one common share of CANN and one common share purchase warrant. The warrant allows its owner to buy a share of CANN for $0.21 at any period of time over the following 24 months. The warrants are currently trading on the CSE under the symbol CANN.WT.A.

 

The offer was conducted on a “best efforts” basis by a syndicate of agents co-led by Cantor Fitzgerald Canada and Cormark Securities, together with Canaccord Genuity (collectively “the agents”). Heritage paid the agents a cash commission equal to 7% of the gross proceeds of the offering, along with broker warrants to purchase up to 7.0% of the number of units sold. The broker warrants function in the same time period and at the same price as the warrants sold in the offering.

 

According to their February 2, 2021 press release announcing the offering, the company’s intent was to sell 86,000,000 units for aggregate gross proceeds of up to $12,040,000. However, the deal gave the agents an over-allotment option, which allowed them to purchase up to an additional 15% of the units sold under the offering within 48 hours of the offering’s end.

 

Demand was high enough that they were able to sell all the units they expected, as well as being strong enough for the agents to fully exercise their over-allotment option.

Heritage says they “intend[] to use the net proceeds of the Offering to purchase additional biomass, packaging materials and equipment, product development and for working capital and general corporate purposes.”

In recent weeks CANN has been busy, launching a new “feelgood” brand and expanding into the Nova Scotian market. They also recently exceeded $1 million in weekly revenue and received approval from Health Canada to export CBD products from Canada to Brazil.

 

Heritage Cannabis’s goal is to become an industry-leading and vertically integrated cannabis provider, working to stay at the forefront of innovative technology and supply chains. They hope to capitalize on both the medicinal and the growing consumer cannabis markets.

 

The stock is currently trading at $0.155.

Full disclosure: Heritage Cannabis Holdings is an Equity.Guru marketing client.

Written By:

Piers Eaton

Canadian, English, and American writer, interested in human behavior. Can usually be found on reading or on a walk. Passable musician and decent snowboarder.

More By This Author
Tags:
Cannabis
Eaton
CANN.C
cannabis
Heritage
Heritage Cannabis
Public Offering
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x