The cannabis-extraction-technology company said it intends to use the proceeds to fund operating expenses related to its recently announced extraction contracts and for general working capital.
Nextleaf will offer the units at a price of $0.30 a piece and each unit will comprise one common share and one common share purchase warrant of the company.
READ: Nextleaf Solutions acquiree Nextleaf Labs signs cannabis extraction deal with Atlantic Canada producer
Each warrant shall be exercisable to acquire one common share at a price per warrant share of $0.50 for a period of 24 months from the date of issuance.
"Following our recently announced commercial contracts to process up to 25 metric tons of biomass, we feel this is the right time to provide our company with additional growth working capital to pursue these accretive opportunities," said CFO Charles Ackerman in a statement.
"As we move towards the outdoor cannabis harvest this fall, our goal is to have our cannabis oil refinery at 100% utilization. This capital will help us move toward that goal, and most importantly - profitability.”
Provided that the common shares trade above $0.70 per share for 10 consecutive trading days, then the expiry date of the warrants will be automatically accelerated to the date that is 30 days after the date the company provides notice by press release to the holders of the warrants, Nextleaf said in the statement.
The units to be issued under the financing will be subject to a four-month hold period. There is no minimum offering amount and the company may close the offering in one or more tranches.
The offering is subject to an over-allotment option, at the discretion of the company, under which it may issue additional units for additional gross proceeds of up to 100% of the gross proceeds.
Nextleaf, based in Vancouver, owns a portfolio of 20 issued patents and over 60 pending patents for the extraction, purification, and formulation of cannabinoids.
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