Delta 9 Cannabis Inc (TSX:DN) said it has established an at-the-market (ATM) equity program which allows the company to issue up to $5 million of its common shares from treasury to the public from time to time, at the company’s discretion.
The company said it expects to use the net proceeds from the ATM Program for general corporate purposes and working capital needs.
Distributions of the common shares through the ATM Program will be made under the terms of an equity distribution agreement dated December 6, 2022, between the company and its agent, Haywood Securities Inc.
READ: Delta 9 Cannabis says opening its 17th cannabis store in the province of Manitoba in Dauphin
Under the equity distribution agreement, the common shares may be offered and sold by the agent: (a) in privately negotiated transactions with the consent of the company and, if required, by the Toronto Stock Exchange (TSX); (b) as block transactions; (c) by the agent, on the TSX or on any other “marketplace” (as such term is defined in National Instrument 21-101 – Marketplace Operation) in Canada; or (d) by any method permitted by law that constitutes an “at-the-market distribution” under National Instrument 44-102 – Shelf Distributions.
The volume and timing of distributions under the ATM Program, if any, will be determined in the company’s sole discretion.
The ATM Program will be effective until the earlier of the issuance and sale of all of the common shares issuable under the ATM Program and October 9, 2023, unless terminated prior to such date by the company or the agent.
As common shares sold in the ATM Program will be issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of the distribution.
The offering under the ATM Program will be made under a prospectus supplement dated December 6, 2022, to the company’s final amended and restated short form base shelf prospectus dated November 25, 2022, for the provinces of Canada, except Québec, and the company’s final base shelf prospectus dated November 25, 2022, for Québec and the territories of Canada.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses.
Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc, is a licensed producer of medical and recreational cannabis and operates an 80,000-square-foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com