MediPharm Labs Corp. (LABS.V) (MEDIF) (MLZ.F) has applied to list its common shares on the Toronto Stock Exchange (TSX). MediPharm Labs continues to trade on the TSX Venture Exchange under the symbol “LABS”.
This follows the company’s announcement that it had closed its previously announced bought deal offering of 13,514,000 common shares in the capital of the company at a price of $5.55 per common share for aggregate gross proceeds of C$75 million.
“We are extremely pleased to be closing this successful and oversubscribed bought deal financing, a key milestone that significantly strengthens our balance sheet and supports continued growth,” said Pat McCutcheon, MediPharm Labs Chief Executive Officer. “This financing couldn’t come at a more opportune time as we look to roll-out further end-consumer cannabis products (including formulated oil bottles, gel caps, and vape cartridges) following the recent announcement of the final regulations authorizing additional cannabis extract-based products, which are expected to come into force this upcoming October. Our balance sheet positions us well to execute strategic international expansions to develop our business in new jurisdictions and secure a global supply chain.”
MediPharms said it plans to use the net proceeds from the offering to fund its ongoing capital expenditures at its Canadian and Australian facilities, for domestic and international expansions, research and development and general corporate purposes.
The offering was underwritten by a syndicate of underwriters led by Scotia Capital Inc., GMP Securities L.P. and BMO Nesbitt Burns Inc. MediPharm granted the underwriters an overallotment option to purchase up to an additional 2,027,100 Common Shares on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes. In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $86,253,105.