Willow Biosciences Inc (TSE:WLLW) (OTCQX:CANSF) said late Thursday that it has upsized the bought-deal financing scheme it launched earlier in the day to raise $25 million, up from $20.0 million previously.
Willow said Eight Capital and BMO Capital Markets - as co-lead underwriters on behalf of a syndicate of underwriters - will now buy15,152,000 common shares of the company at an unchanged price of $1.65 per common share. Previously, the underwriters had agreed to purchase 12,122,000 common shares.
The group said the net proceeds are expected to be used to help access new markets for the company's cannabinoid portfolio, expedite the commercialization of new cannabinoids, access additional manufacturing capacity, and working capital as well as for general corporate purposes, Willow Biosciences said in a statement.
READ: Willow Biosciences set to benefit from Jazz Pharmaceuticals acquisition of GW Pharmaceuticals
In addition, Willow Biosciences has granted the underwriters an over-allotment option exercisable in whole or in part for a period of 30 days following the closing of the offering to purchase an additional 15% of shares at the offering price.
The shares will be offered in each of the provinces of Canada, other than Québec. The closing will be subject to certain customary conditions, including receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
Willow, based in Vancouver, British Columbia, produces high purity, plant-derived compounds that provide building blocks for the global pharmaceutical, health and wellness, and consumer packaged goods industries.
Contact the author at jon.hopkins@proactiveinvestors.com