financing Archives - Page 2 of 3 - Green Market Report

StaffNovember 28, 2017
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Canadian-based Organigram Holdings Inc. (OGRMF)  announced a C$50 million deal with Eight Capital. The medical marijuana producer entered into an agreement where Eight Capital has agreed to purchase 14,285,715 units on a bought deal basis at a price of C$3.50 per unit for gross proceeds of C$50 million.

The proceeds will be used over the next 18 months to fund the company’s expansion plan to build one of the largest indoor grow facilities in Canada. The plans are to add an additional 40,000 kilograms per year bringing the company’s total production to roughly 65,000 kilograms per year. In addition to using the money for expansion, Organigram will also pursue strategic investments through international opportunities and use the funds for general working needs. The deal is expected to close on or about December 18.

Organigram CEO Greg Engel commented “This financing provides us with the unique opportunity to extend our expansion plan to develop one of the largest and most impressive indoor growing facilities in the country. We have full confidence that this will allow us to fulfill our domestic and international opportunities well into the future.”

Once the offering is complete, construction is expected to begin at the Moncton location adding 255,000 of additional square feet of space, bringing the company’s total footprint to 429,000 square feet over 17.5 acres. Upon completion, Organigram will be able to produce medical and adult-use marijuana, along with edibles, infused, oils and extract products.

“One of our key operating philosophies is to keep production costs low by centralizing operations” noted Engel. “The simplicity of a single site is part of our focused approach on achieving the highest earning-per-gram in the industry. These production efficiencies will deliver tremendous shareholder value. The plan will allow the Company to commence development of the land and building purchases made at 55 English Drive and 91 English Drive, both natural extensions of Organigram’s original location.”

According to the company statement, Organigram “Has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $7,500,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $57,500,003.”

Organigram is a licensed producer of medical marijuana in Canada. Organigram is focused on solidifying its position as one of the world’s leading producers of indoor-grown marijuana by continuing its expansion and constructions plans and by producing the highest quality, condition-specific medical marijuana for patients in Canada. Organigram’s facility is located in Moncton, New Brunswick and the Company is regulated by the Access to Cannabis for Medical Purposes Regulations.

According to its website, Eight Capital is a 100% principal-owned Canadian, full-service investment dealer. Its primary businesses include investment banking, equity research, and institutional sales & trading. The partnership was established by a group of elite professionals with experience at leading Canadian bank-owned and boutique brokerages.


StaffNovember 27, 2017
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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.


StaffNovember 16, 2017
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Canadian-based Aurora Cannabis Inc. (ACBFF) announced that it has entered into an agreement with Canaccord Genuity Corp. to arrange for purchases of up to 100,000 special warrants at a price of $1,000 per warrant, for gross proceeds of up to $100 million. The deal is expected to close on or about November 24.

“The size and favourable terms of this Offering are a recognition of our powerful growth and industry-leading execution, and reflect Aurora’s maturity, discipline and dominant position within the global cannabis sector,” said Terry Booth, CEO. “Upon closing of this Offering, and with the anticipated gross proceeds on conversion of our recently accelerated warrants, Aurora’s pro-forma cash position will exceed an unprecedented $340 million. We will deploy that capital carefully but strategically to further accelerate our domestic and international expansion plans, and to seize additional opportunities to differentiate Aurora from other producers.”

Aurora recently announced its earnings  with a big jump in earnings as patient counts increased. The company also did a $69 million unit offering and a $6 million private placement with a syndicate of underwriters just two weeks ago that was also led by Canaccord Genuity.

Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as “Aurora Mountain”, a second 40,000 square foot high-technology production facility known as “Aurora Vie” in Pointe-Claire, Quebec on Montreal’s West Island, and is currently constructing an 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport.

The stock was lately trading at $4.45, down from the 52-week high $5.45.


StaffNovember 1, 2017
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 CannTrust Holdings Inc. (CNTTF), a licensed producer of medical cannabis under the Health Canada Access to Cannabis for Medical Purposes Regulation (“ACMPR”) program, announced that it has entered into an agreement with a syndicate of underwriters co-led by Echelon Wealth Partners Inc. and Bloom Burton Securities Inc. that have agreed to purchase, on a bought deal basis, 3,000,000 common shares at a price of $5.00 for aggregate gross proceeds to CannTrust of $15,000,000. 

The deal is expected to close on or about November 30. The net proceeds will be used to fund the Phase 2 build out of CannTrust’s recently licensed Niagara Greenhouse Facility and for general corporate and working capital purposes. CannTrust is listed as a “Grey Market” stock on the OTC Markets Exchange.

Eric Paul, CEO of CannTrust, stated, “We recently announced record revenues and patient numbers and are continuing to see strong trends that we believe will take up full demand from Phase 1 of our recently licensed 430,000 Niagara Greenhouse Facility. ”

Brad Rogers, President at CannTrust, added, “The pending legislation to legalize the adult consumer recreational use of cannabis provides a further major opportunity for the Company. With the completion of all phases of our Niagara expansion, we plan to have in excess of 1,000,000 square feet of production capacity. This will give us the ability to acquire a substantial share of the increased demand arising from this new market.”

According to a company statement, “CannTrust expects the first harvest from its Niagara Facility in early November 2017, with full utilization from Phase 1 expected in December 2017. The planned Phase 2 expansion at this Facility is anticipated to be completed and in cultivation towards the middle of 2018. Phase 1 and 2 should conservatively provide the Company with an additional 40,000 kilograms of annual growing capacity.”

In addition to the bought deal announcement, CannTrust also stated that it had taken on a $15 million mortgage for the Niagara Greenhouse Facility subject to lender approval. If the mortgage is approved, that and the bought deal will fully fund the company through its Phase 2 expansion. CannTrust currently operates a 50,000 square foot state-of-the-art hydroponic facility in Vaughan, Ontario and with this recently received Health Canada Cultivation Licence is set to begin production on Phase 1 of its 430,000 square foot cultivation facility in the Niagara region.


Debra BorchardtOctober 26, 2017
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Cannabis lifestyle brand  Tokyo Smoke announced the closing of its oversubscribed Series B funding of approximately $6 million CAD or $4.7 million USD. The funds will be used to continue retail expansion, marketing, and strategic acquisitions, accelerating Tokyo Smoke’s vision of becoming a category-defining cannabis brand.

“We are incredibly grateful for the support from investors in this round and their show of confidence in Tokyo Smoke. Having raised over $10 million in the past 10 months, this funding will further empower us to take great strides in our retail expansion and put us closer to achieving our goal of building the largest cannabis related retail infrastructure in Canada,” says Alan Gertner, co-founder, and CEO of Tokyo Smoke.

Tokyo Smoke sells medical marijuana products and paraphernalia. It also sells coffee, clothing and even home goods like candles and incense. The clothing line is limited and consists of a pair of sweatpants, a couple of t-shirts and a hat. The best sellers are mostly the smoking accessories, but the company also sells several coffee accessories too.

The funding round was led by Aphria Inc., (APHQF) one of Canada’s largest medical cannabis producers, and Green Acre Capital Fund I LP, a fund dedicated to strategic investments in cannabis properties. In addition, Tokyo Smoke also received a strategic investment from Paul Rowan, a design pioneer in the housewares industry and a founding partner at Umbra, a well-known home goods company.

“With the recent announcement in Alberta and strong operational partners in the region, we look forward to the possibility of dispensing and on-site consumption. Ontario’s government-run model is something we long prepared for, and our in-store operations will be readied to take on a new dimension,” said Gertner. “The Tokyo Smoke team is excited to take advantage of the opportunities that abound as more provinces announce retail and distribution plans, meeting the shifting landscape with energy and optimism.”


StaffOctober 19, 2017
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Cronos Group Inc. (PRMCF) announced that it has entered into a letter of engagement with PI Financial Corp. as the sole lead underwriter to purchase for re-sale 4,761,905 common shares. This is being done on a “bought deal” basis pursuant to the filing of a short form prospectus and expected to price $3.15 per share for total gross proceeds of $15,000,000.75. 

Cronos plans on using the net proceeds for general corporate purposes, to fund growth and to provide for possible future acquisitions. The deal is expected to close on or about November 14, 2017.

Cronos has been busy this year expanding into international markets. Just last week the company signed a deal entering into a strategic distribution partnership with G. Pohl-Boskamp GmbH & Co. KG, which is an international pharmaceutical manufacturer and supplier, distributing its products to over 12,000 pharmacies in Germany alone. Cronos’ global subsidiaries will supply Peace Naturals branded cannabis products to Pohl-Boskamp for distribution within Germany.

In September, the Company has entered into a strategic joint venture with Kibbutz Gan Shmuel for the production, manufacture and global distribution of medical cannabis.  Gan Shmuel is one of the largest and most sophisticated kibbutzim in Israel, producing and exporting a variety of products to 35 countries throughout Europe and Asia.

The stock has risen 189% on the Toronto Exchange, where it trades under the symbol MJN. While the Toronto Exchange said this week that it will not allow its listed companies to do business in the U.S. where marijuana is still federally illegal, it has no issue with other countries, if those countries allow marijuana use.

Cronos Group Inc was formerly PharmaCan Capital Corp. and operates two Licensed Producers regulated within Health Canada’s Access to Cannabis for Medical Purposes Regulations (the ACMPR) and holds a portfolio of investments in other Licensed Producers and ACMPR applicants. Its LPs, Peace Naturals Project Inc. and In The Zone Produce Ltd., are collectively located on over 125 acres of agricultural land. It also holds equity positions in Licensed Producers Whistler Medical Marijuana, Hydropothecary and Abcann Medicinals. Whistler Medical Marijuana is licensed to produce and sell medical marijuana, as well as cultivate cannabis oil. Hydropothecary is licensed to produce medical marijuana. Abcann Medicinals also has license to produce medical marijuana. With interest in five Licensed Producers and two LP applicants, it is focused on building brand portfolio providing patients with personalized care.


StaffOctober 17, 2017
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Canadian-based Aphria Inc. (APHQF) announced that it has entered into an agreement with Clarus Securities Inc., to purchase, on a “bought deal” basis, 11,034,500 Common Shares of Aphria at a price of C$7.25 per share for gross proceeds of C$80,000,125. The deal is expected to close on or about November 7.

Aphria intends to use the money to develop infrastructure, including the purchase of capital and other equipment, plus to fund the expansion of its footprint in Canada and other strategic investments, and for general working capital purposes.

According to a statement, “The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 1,655,175 Common Shares at the Offering Price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the Offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the Offering will be C$92,000,144.”

Ahpria’s stock on the OTC Markets was trading at $6.32, not far from its 52-week high of $6.60. On the Toronto Exchange, the stock is trading at C$7.92 and that is also not too far off from its 52-week high on that exchange of C$8.77. The company’s stock popped when it recently reported a very solid quarter of earnings.

Aphria is one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario,  Aphria is powered by sunlight, allowing for the most natural growing conditions available.  Aphria is the first public licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.

The Common Shares will be offered by way of a short form prospectus to be filed in each of the provinces of Canada, other than the Province of Quebec, by way of a private placement in the United States, and in those jurisdictions outside of Canada and the United States which are agreed to by the Company and the Underwriters, where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.

 

 

 


StaffOctober 17, 2017
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Toronto-based Emblem Corp. (EMMBF) announced that it has entered into an agreement with Eight Capital in which Eight Capital will buy 5,714,300 units and 15,000 convertible unsecured debentures of Emblem on a “bought deal” priced at $1.75 CAD per unit. Altogether the gross proceeds are approximately $25 million CAD.

In a statement, the company also said it agreed to, “an over-allotment option to purchase up to an additional 15% of the Units at the Unit Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $1,500,004 CAD will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $26,500,029 CAD.” The deal is expected to close on or about November 7 assuming it receives all the appropriate approvals.

The money will be used to fund construction of the first 100,000 square feet production facility on the 80n acre property located in Paris, Ontario that was acquired in May. The plan is to use this production facility to meet the needs of the adult recreational market once the program is established.

Eight Capital (along with any additional underwriters included in a syndicate of underwriters in connection with the Offering) will receive a cash commission equal to 6.0% of the gross proceeds of the Offering. Emblem “will also issue to Eight Capital (along with any additional underwriters) non-transferrable compensation warrants in an amount equal to 3% of the gross proceeds of the offering divided by the Unit Issue Price.”

Emblem made the announcement on Monday following the market close. The stock is up over 3,000% on the Canadian Exchange and was lately trading at $1.96 CAD, down from its year high of $6.44 CAD. On the OTC Markets, the stock was lately trading at $1.57, higher than its 52-week lows of $1.14, but still down from its year high of $3.81.

Emblem is a licensed producer of medical marijuana and has not generated any revenues. The Company produces approximately 55 kilograms per month of dried flower marihuana.

 


Debra BorchardtOctober 10, 2017
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Canadian-based Aurora Cannabis Inc.  (ACBFF) announced that it entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to purchase, on a bought deal basis, 16,700,000 units of the Company at a price of $3.00 per Unit for aggregate gross proceeds to Aurora of $50,100,000. Proceeds from the offering will be used for expansion both domestically and internationally as well as general working capital needs. The offering is expected to close on or about November 2, 2017.

“This financing ensures that we have the financial horsepower we need to keep going at full throttle and continue seizing and capitalizing on attractive growth opportunities in Canada and around the world,” said Terry Booth, CEO. “With Aurora’s excellent balance sheet and what we believe is the strongest cash position in the industry, we are ideally positioned to further accelerate our aggressive growth strategy, further expand production capacity, and enter multiple new international markets. Aurora will continue to push the pace, with agility, innovation, and disciplined execution, and set the benchmark as a globally dominant cannabis company.”

Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations. The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as “Aurora Mountain” and is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.

Each unit that is offered in the deal will be comprised of one common share of the Aurora and one common share purchase warrant. The warrants will be exercisable to acquire one common share for a period of 3 years following the closing date of the offering at an exercise price of $4.00 per Warrant Share, subject to adjustment in certain events.

Aurora has also granted Canaccord an option to purchase up to 2,505,000 additional units of Aurora on the same terms as the offering. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $57,615,000.

Aurora’s stock price has risen over 7% for the past year and was lately trading at $2.51.

 


Debra BorchardtSeptember 28, 2017
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Casa Verde Capital announced a $2 million investment into cannabis software company Trellis, with reinvestment from Gateway. There is also additional funding from Argonautic Ventures and One Gun

Trellis is a seed-to-sale platform that not only helps cannabis companies stay on top of compliance requirements but also helps customers prepare for upcoming regulations. The platform also helps companies comply with inventory management and security requirements. Trellis had a successful beta launch in 2016 and currently supports cannabis businesses in California and Canada with strong customer growth in 2017. Today’s announced investment round is intended to allow Trellis to expand into additional US market segments and scale to accommodate increasing demand for its software.

“We are at a pivotal point in the industry where the market is expanding with new regulations and operators are experiencing growing pains. This makes it all the more important to have strong tools and procedures in place,” said Pranav Sood, CEO of Trellis. “Our focus is on developing industry tools that help clients manage their cannabis inventory, simplify their compliance processes and support the production of safe, optimum quality product. We are thrilled to have been able to attract such a strong team of beta clients, investors, and advisors to support us in our vision.”

Some of Trellis’ beta clients include Humboldt Legends, Cultivate, Sonoma Grown, Greenrock Botanicals and Peridot Labs.

Casa Verde Capital is led by Karan Wadhera and Evan Eneman, along with Snoop Dogg and his longtime business partner Ted Chung. The company makes early stage investments in innovative and fast-growing ancillary businesses in the emerging cannabis industry. The VC firm focuses on businesses that “do not touch the plant,” allowing the team to focus its efforts on businesses proven to scale in a still uncertain regulatory environment.

“As cannabis legalization sweeps the US, the compliance burden for cannabis-related businesses will become more and more rigorous. Growers, who are generally hesitant to adopt new technologies, have been thrilled with Trellis’ tracking software. We have been searching for companies with an elegant solution to address the growing pains of the industry. That is exactly what Pranav and his team have built with Trellis,” says Karan Wadhera, Partner at Casa Verde Capital.

 


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