PlantX Life Inc. (CSE:VEGA) has revealed pricing for the marketed public offering it announced on Tuesday, with each unit in the company to be offered at $1.25 for the issuance of a minimum of 8 million units to raise minimum total gross proceeds of $10 million.
The company confirmed that said it intends to use the net proceeds from the offering to fund expansion, to continue to develop a user app, to evaluate and pursue potential strategic acquisitions, and for working capital and general corporate purposes.
The offering, which will be conducted on a "best efforts" agency basis, is being led by Mackie Research Capital as lead agent and sole bookrunner.
PlantX said each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will be exercisable at a price of $1.45 and will entitle the holder to purchase one additional common share for a period of two years from the closing of the offering, subject to an acceleration clause, if, at any time, the daily volume-weighted average tr ading price of PlantX's common shares equals or exceeds a specified price over any 10 consecutive trading days.
At the closing, the company said in Tuesday's statement that it will pay Mackie Research Capital, as the agent, a cash commission of 6% of the aggregate gross proceeds arising from the offering other than in connection with a President's List of investors, in which case the cash commission shall be 4% of the proceeds raised from President's List Investors.
In addition, and subject to regulatory approval, the agent will receive compensation options exercisable at any time up to 24 months following closing to purchase PlantX common shares in an amount equal to 6% of the number of units sold in connection with the offering - other than in connection with President's List Investors, in which case the number of compensation options shall be 4% of the number of units sold to President's List Investors.
The closing of the offering is currently expected to be on or about March 11, 2021, or such other date as agreed upon between the company and its agent, and is subject to certain conditions including, but not limited to, the execution of an agency agreement and the receipt of all necessary regulatory approvals including the approval of the CSE.
Last week, PlantX reported that it had achieved record monthly gross revenue of $1,089,502 for January, while recording $751,356 in cost of goods sold.
The company noted that revenue for January exceeded management's expectations, given that e-commerce sales were expected to be slower following the holiday season.
PlantX's digital platform is a one-stop-shop for everything plant-based. With its fast-growing category verticals, the company offers customers across North America more than 10,000 plant-based products. In addition to offering meal and indoor plant deliveries, the company currently has plans underway to expand its product lines to include cosmetics, clothing and its own water brand.
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