Newstrike Resources Archives - Green Market Report

Debra BorchardtMay 24, 2018
shutterstock_751259302.jpg?fit=960%2C640&ssl=1

3min440

Toronto-based Newstrike Resources Ltd. (NWKRF) announced that it has entered into an agreement with a syndicate of investment dealers co-led by Cormark Securities Inc. and INFOR Financial Inc. to purchase 53,350,000  units of Newstrike, at a price of $0.75 per unit. The deal is expected to generate total gross proceeds of approximately $40 million. The net proceeds of the deal will be used for growth initiatives, working capital, and general corporate purposes.

According to a company statement, each unit will consist of one common share of Newstrike and one-half of one common share purchase warrant. In addition, Newstrike has granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Units of the Offering on the same terms exercisable at any time up to 30 days following the closing of the Offering.

“As adult recreational use moves rapidly towards legalization, we recognize the importance of establishing a national brand with a footprint in each of the key Canadian markets,” commented Jay Wilgar, Newstrike’s CEO. “With the proceeds of this Offering, Newstrike will have access to over $115 million to deploy into our facility expansion, a variety of transformational branding and product development initiatives and potential new investment and acquisition opportunities, with the goal of building Canada’s premier recreational cannabis company. This Offering ensures that we able to fully capitalize on the tremendous growth opportunities in front of us,” added Mr. Wilgar.

The deal is expected to close on or about June 14, 2018.

Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Up Cannabis is, in turn, the parent company of Up Cannabis Niagara Inc. Newstrike, through Up Cannabis and together with select strategic partners, including Canada’s iconic musicians The Tragically Hip, is developing a diverse network of high-quality cannabis brands.


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 22 hours

New Colorado Rules: More Packaging Mandates, But Also Supply Chain Flexibility

@GreenMarketRpt – 23 hours

Michigan Gov. Whitmer Makes Marijuana Top Cop’s Role Permanent

@GreenMarketRpt – 1 day

Michigan Man Who Halted Some NY Licensing Suing Los Angeles

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.