Willow Biosciences Inc (TSE:WLLW) (OTCQX:CANSF) is increasing its previously announced offering to C$10 million to fund its efforts to commercialize cannabigerol, or CBG.
The firm announced Wednesday that it will sell 15,384,615 units of the company at a price of $0.65 per unit for gross proceeds of approximately $10 million -- a $2 million increase due to excess demand.
Vancouver-based Willow has developed a proprietary process to produce high purity, plant-derived CBG and CBD compounds for the global pharmaceutical, health and wellness, and consumer packaged goods industries.
READ: Willow Biosciences partners with Lethbridge and Calgary universities to study the effects of non-psychoactive cannabinoids on intestinal inflammation, abdominal pain and depression
Under the term sheet, each unit will consist of one share and one-half of one warrant excercisable at $0.85 for a period of 24 months from the closing date. The offering includes and acceleration clause that stipulates if Willow's shares trade at $1.20 for 20 consecutive trading days, the company may, accelerate the expiry date of the warrants to the date that is 30 days following notice.
The offering will be led by ATB Capital Markets on behalf of a syndicate of agents. The firm plans to grant the agents a 30-day option to purchase up to an additional 15% of the units offered in the financing. Willow also granted the agents an option to purchase up to an additional 15% of the number of units offered in the financing.
Additional proceeds will go towards general administrative expenses, working capital and other corporate purposes.
--Updated with price of offering and gross proceeds--
Contact Angela at angela@proactiveinvestors.com
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