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Heritage Cannabis strikes deal to increase bought-deal financing to $15M

Heritage Cannabis Holdings Corp has struck a new deal with a syndicate of investment dealers led by Cormark Securities to increase the size of their “bought deal” financing to $15 million from $10 million
cannabis plant
The Vancouver company has two cannabis subsidiaries Voyage Cannabis and CannaCure

Heritage Cannabis Holdings Corp (CSE:CANN) (OTCMKTS:HERTF) said Thursday it has struck a new deal with a syndicate of investment dealers led by Cormark Securities to increase the size of their “bought deal” financing to $15 million from $10 million.

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

Under the revised terms of the deal, the underwriters, which also include PI Financial, Canaccord Genuity Corp and Desjardins Securities, have agreed to purchase 28.4 million units from Heritage at a price of C$0.53 per unit.

READ: Heritage Cannabis unveils plans for $10 million bought financing deal

In addition, Heritage has awarded the underwriters an option, exercisable in whole or in part, to purchase up to an additional 4.26 million units on the same terms for the purpose of market stabilization or to cover overallotments.

If this over-allotment option is exercised in its entirety, the offering’s gross proceeds will come to $17.3 million.

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

The offering is set to close on or about May 2 and is subject to regulatory approval from the Canadian Securities Exchange.

The Vancouver company has two cannabis subsidiaries Voyage Cannabis Corp and CannaCure Corp.

Contact Ellen Kelleher at [email protected]

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