CROP Infrastructure Corp (CSE:CROP) (OTCMKTS:CRXPF) said Tuesday that it has closed an oversubscribed C$3 million private placement.
The cannabis company said it closed its non-brokered private placement raising $3,086,244 by issuing up to 10,287,480 units at a price of $0.30 per unit.
Each unit consists of one share and one warrant. Each warrant entitles the holder to purchase an additional share at an exercise price of $0.50 for a period of 24 months after the close of the offering.
"With the closing of this private placement CROP is now capitalized to complete the construction of its 40-acre outdoor Nevada farm, build an additional 30,000 square feet of greenhouse space in California and begin identifying entry opportunities into additional states," said CEO Michael Yorke in a statement.
CROP’s portfolio of cannabis projects include cultivation properties in California and Washington state, a 1,000-acre Nevada cannabis farm and extraction work in Nevada.
The company also said that in connection with the closing, the company paid C$38,333.98 in commissions and issued 128,780 brokers warrants exercisable at C$0.50 for a period of two years.
Further to this, CROP said it has converted $1,193,000 in outstanding debts at the same price as the private placement by the issuance of 3,976,667 units.
Shares of CROP were at C$0.34 on Tuesday.