Chemistree Technology Inc (CSE:CHM) (OTCMKTS:CHMJF) said it has filed a final short-form prospectus on its previously announced offering of 8,200 convertible debenture units for aggregate proceeds of as much as C$8.2 million to support growth in Washington State and California.
In addition, the cannabis investment company said late Monday it intends to issue up to 1,400 debenture units on a non-brokered private placement basis for aggregate gross proceeds of up to C$1.4 million.
Vancouver-based Chemistree plans to use the net proceeds of the offering and the private placement to expand its facilities in Washington State; expand its brands in California, including the launch of Sugarleaf products; and continue the licensing, development and ultimately the buildout of the Chemistree’s property in Desert Hot Springs, California.
The proceeds will also be used for working capital and general corporate purposes.
The offerings will not be registered under the US Securities Act of 1933 or any US state securities laws, according to Chemistree.
Shares of Chemistree climbed C$0.01 to C$0.48 in Monday’s Canadian trading. They were up US$0.01 to US$0.35 on the OTC Markets.
Last month, the company said its subsidiary CHM Desert LLC had won a conditional use permit from local authorities in Desert Hot Springs, California for its 9.55-acre property in the city’s cannabis cultivation-friendly zone.
Contact Dennis Fitzgerald at [email protected]