Mojave Jane Brands Inc (CSE:JANE) (OTCMKTS:HHPHF) said it has raised C$3.2 million to fund the cannabis company’s growth plans over the near term.
In a statement on Tuesday, tthe Toronto-based firm said it will use the proceeds from the non-brokered private placement to finance strategic acquisitions and expand its delivery footprint.
CEO Gary Latham told shareholders that he was “pleased” with the demonstration of support for the cannabis company's growth strategy.
READ: Mojave Jane entering market for cannabis-infused beverages after signing manufacturing license agreement with HAI Beverages
“We intend to deploy the proceeds to expand our extraction, manufacturing and delivery capabilities in the burgeoning California market through a blend of expansion and acquisition,” Latham said in the statement.
The financing consisted of 15.9 million units at C$0.20 per unit for total gross proceeds of C$3,186,100.
Each unit consists of one share and one warrant exercisable at C$0.30 for a two-year period ending September 9, 2021. Securities are subject to a hold period of four months plus one day post-closing.
The company also paid a finder’s fee of just over C$100,000 and issued warrants for the finders to acquire up to 347,430 shares at C$0.20 for a one-year period ending September 9, 2020.
Mojave Jane recently announced that it is entering the market for cannabis-infused beverages after signing a manufacturing license agreement with Vancouver-based HAI Beverages Inc.
The company said the agreement allows it to exclusively license HAI’s proprietary technology for the solubility and bioavailability of THC and CBD components in California.
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