Ontario-based ABcann Global Corporation (ABCCF) announced that it has entered into a binding interim agreement for a proposed private placement of convertible senior unsecured debentures in the aggregate principal amount of $30,000,000. ABcann plans on using the money to make strategic acquisitions in the cannabis industry and for general working purposes.
“This financing will provide ABcann further capital to evaluate additional accretive opportunities as we strengthen our cash position to over $70 million,” commented Barry Fishman, CEO, and director of ABcann. “The stronger cash position will give us greater flexibility to execute our growth strategy, complete our current construction, and obtain larger-scale, cost-effective production capacity, which may include a greenhouse approach.”
The debentures will mature in 36 months and bear interest at 7% annually. It will be convertible ay $1.50 per share and be convertible, “at the option of the Company, into Shares if, at any time commencing four months plus one day following the closing date of the Financing, the daily volume weighted average trading price of the Shares on the TSX Venture Exchange for any consecutive 10 day trading period is greater than $2.25 per Share.” Shares on the OTC Market were lately trading at $1.15, down from the 52-week high of $1.25.
ABcann recently strengthened the board by adding Mr. Richard Fitzgerald, who was Chairman of Diageo Canada Inc. until 2008, having previously served as Executive Director of Diageo’s Global Commercial Roadmap Initiative, and as President and CEO of Diageo for eight years. During his tenure, he was responsible for Diageo’s global category-leading brands, including Smirnoff®, Johnnie Walker®, Baileys®, and Guinness® in Canada.
The company also named Dr. Michael Bumby as the Chief Financial Officer of the Company, effective December 1, 2017. He brings extensive public company CFO, global pharmaceutical, and M&A experience to ABcann. Dr. Bumby succeeds Jenny Guan, who has been appointed Vice President and General Manager, Napanee Operations.
ABcann holds production and sales licenses from Health Canada. Its flagship facility in Napanee, Ontario contains proprietary plant-growing technology, centered on its specially designed, environmentally-controlled growing chambers. This approach results in the production of pharmaceutical-grade cannabis products.