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Heritage Cannabis unveils plans for $10 million bought financing deal

The company said funds raised are expected to be used for working capital and general corporate purposes
cannabis in sun
Heritage Cannabis currently has two Health Canada-approved licenced producers, through subsidiaries PhyeinMed and CannaCure

Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS:HERTF) unveiled plans for a substantial $10 million bought deal financing on Wednesday. 

The company said funds raised are expected to be used for working capital and general corporate purposes. 

The company said a syndicate of investment dealers, led by Cormack Securities Inc, have agreed to purchase 18.9 million units at a price of C$0.53 per unit and offer them to the public by way of short-form prospectus for gross proceeds of approximately $10 million. 

READ: Heritage Cannabis subsidiary CannaCure installs extraction machines

Each unit comprises one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of C$0.70 for a period of 30 months. 

The closing of the offering is expected on or around May 2, 2019 and is subject to regulatory approval.

The company said that in the event that the volume-weighted average trading price exceeds $1.05 for 20 consecutive trading days following the closing date, the company may accelerate the exercise of the warrants. 

In addition, the company has granted the underwriters an option to purchase up to an additional 15% of the units of the offering on the same terms exercisable at any time up to 30 days following the closing of the offering. 

Shares of Heritage Cannabis were at C$0.59 on Wednesday. 

Contact Katie Lewis at [email protected]

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