Avicanna Inc (TSX:AVCN, OTCQX:AVCNF) said it has closed a non-brokered private placement offering of 3,096,230 units at a price of $0.40 each for aggregate gross proceeds of approximately $1.24 million.
The company intends to use the proceeds from the offering for general working capital purposes, general and administrative expenses, expenditures related to production and manufacturing, and research and clinical development.
Each unit in the placement is comprised of one common share in the capital of the company and one-half of one common share purchase warrant of the company. Each whole warrant shall entitle the holder to acquire one common share in the capital of the company at an exercise price of $0.50 per share, subject to adjustment in certain events, until March 20, 2026.
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The company has paid an aggregate total of approximately $7,500 in cash finders' fees and issued an aggregate total of 18,750 finder's warrants in connection with the offering to certain finders in connection with subscriptions for units made by purchasers introduced to the company by such finders.
Each finder warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.41 per share, subject to adjustment in certain events, until March 20, 2026.
The unit shares and warrants, and any securities issuable upon conversion or exercise thereof, are subject to a four-month hold period under applicable securities laws in Canada. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of evidence-based cannabinoid-based products for the global medical and pharmaceutical market segments. The company has an established scientific platform including R&D and clinical development that has led to the commercialization of more than thirty products across various market segments.
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