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Namaste Technologies bolsters working capital with amended C$20M bought deal financing

Canaccord Genuity Corp, on behalf of a syndicate of underwriters, agreed to purchase 29 million units in the capital of the company at a price of C$0.35 per unit

Moneybags changing hands
Namaste is a cannabis-focused ecommerce technology company based in Toronto

Namaste Technologies Inc (CVE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) has amended its bought deal financing with Canaccord Genuity Corp hours after the initial deal was announced, doubling its gross proceeds to C$20 million. 

The company upped the number of units offered to 57.2 million from roughly 29 million.

Each unit includes one common share and one purchase warrant, and each warrant entitles its holder to acquire another share at an exercise price of C$0.47 for a period of 36 months after the offering closes. 

READ: Namaste Technologies advances US expansion plans by selling hemp CBD through CannMart.com by collaborating with PeakBirch Logic

The company expects the offering to close on or about January 19, The agreement remains subject to approval from the TSX Venture Exchange.

The net proceeds from the offering will be used for working capital and general corporate purposes, the company said.

Additionally, Namaste has granted the underwriters an option to purchase up to 15% more units for a period after 30 days after closing. 

The company expects the units to be offered in each of the provinces of Canada, other than Québec, and may also be offered by way of private placement in the US to qualified institutional buyers, as well as overseas on a private placement or equivalent basis. 

Namaste is a cannabis-focused e-commerce technology company based in Toronto. Its mission is to become the one-stop-shop for everything a cannabis user needs.

—Updated to include amended bought deal financing agreement—

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

Quick facts: Namaste Technologies Inc

Price: 0.325 CAD

TSX-V:N
Market: TSX-V
Market Cap: $128.98 m
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