It’s time for your Daily Hit of cannabis financial news for December 7, 2020.
On the Site
HEXO Corp. (NYSE:HEXO) wants to change its plan on consolidating its shares to a four to one ratio from eight to one since its share price has risen. Hexo is consolidating its shares in order to meet the compliance standard of $1.00 per share for the New York Stock Exchange.
The company said it believes the original consolidation ratio should be revised downward in light of the recent increase in the trading price of the common shares and in order to maintain a liquid share float and reflect the company’s confidence that it can execute on its growth strategy. It has made an amendment to its notice of meeting dated October 28, 2020, and its management information circular dated October 28, 2020, in respect of its annual and special meeting of shareholders scheduled to be held on December 11, 2020.
Dogma Cannabis is a cannabis company that has a unique mission to raise awareness about animal shelters and help dogs in California get adopted. Dogma Cannabis was launched by cannabis entrepreneur Geoff Doran in September 2020 and is currently in 3 strategic shops, with plans for a fourth in December. Dogma will be launching its “ready to roll” product in January in addition to the half ounces that they currently have in the California market.
The brand, which is part of the Van Doran portfolio, wants to change the way current cannabis consumers use cannabis by introducing outside of the box products for the consumer that is active, on the move and likes to give back to a cause. The company will be donating a portion of its profits to animal shelters in California.
In Other News
Numinus Wellness Inc. (TSXV: NUMI), a company creating an ecosystem of health solutions centered around developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies increased the size of its previously announced bought deal financing. The underwriters have agreed to purchase, on a bought deal basis an aggregate of 22,059,000 units at a price of $0.68 per Unit for aggregate gross proceeds to the company of approximately $15 million. The original deal was for $10 million.
The company has granted the underwriters an option to purchase up to an additional 3,308,850 Units at a price of C$0.68 per Unit, exercisable at any time, for a period of 30 days after and including the Closing Date, which would result in additional proceeds of approximately $2.3 million.
Helix BioPharma Corp. (TSX: “HBP”) announced it has closed a private placement financing for gross proceeds of $1,100,000. The terms of the placement are for the purchase of units at $0.50 per unit. Each unit is comprised of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share at an exercise price of $0.70 and have an expiry of five years from the date of issuance. Helix intends to use the net proceeds of the private placement for working capital and research and development activities.