Cannabis Wheaton is on the hunt for brand spanking new marijuana funding alternatives as the corporate prepares to shut on a stock-purchase deal valued at 100 million Canadian dollars ($78 million).
Under the bought-deal transaction, a syndicate of underwriters will buy 71.5 million Cannabis Wheaton shares for CA$1.04 per share, in accordance to an organization information launch.
Bank of Montreal subsidiary BMO Capital Markets is main the stock-purchase deal, which is predicted to increase CA$100 million in gross proceeds for Vancouver, British Columbia-based Cannabis Wheaton.
Underwriters have the choice to purchase a further 15% of the shares beneath the identical phrases for up to 30 days after the closing of the providing.
If the choice is exercised solely, gross proceeds to Cannabis Wheaton are anticipated to attain CA$115 million.
Cannabis Wheaton couldn’t instantly be reached for remark.
In its launch, the corporate stated it expects to make investments the capital into “domestic and international operations and capacity expansion,” in addition to “potential new investment opportunities and for general working capital purposes.”
Earlier this month, the corporate entered an unique licensing deal with Denver-based Dixie Brands to use Dixie’s mental property – together with proprietary formulations, logos and product branding tied to greater than 100 cannabinoid-infused merchandise in Canada and Mexico.
The 10-year deal consists of an choice to renew for a further 5 years.
Cannabis Wheaton trades on the Toronto Venture Stock Exchange beneath the image CBW.