PlantX Life Inc. (CSE:VEGA) said it has completed its recently announced public offering, raising gross proceeds of over $20 million through the sale and issue of 19,102,765 units of the company at a price of $1.05 per unit.
The company said it intends to use the net proceeds from the offering to fund expansion, to continue to develop a user app, to evaluate and pursue potential strategic acquisitions, and for working capital and general corporate purposes.
The gross proceeds raised of $20,057,903.25 included a partial exercise of the over-allotment option included in the agency agreement entered into on March 11, 2021, between the company Mackie Research Capital which acted as the lead agent and sole book-runner for the offering.
READ: PlantX Life reprices units for sale in marketed public offering of up to $20M
Each unit in the offering consisted of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $1.25 each up to March 22, 2023, subject to an acceleration clause if, at any time, the daily volume-weighted average trading price (or closing price on trading days when there are no trades) of the common shares on the Canadian Securities Exchange equals or exceeds $2.00 each over any 10 consecutive trading days.
PlantX said it paid the Mackie Research Capital a cash commission of approximately $970,000 as agent for the offering and issued to it 923,943 compensation options exercisable at any time up to March 22, 2023, to purchase common shares at a price of $1.25 each.
As the digital face of the plant-based community, PlantX's platform is the one-stop-shop for everything plant-based. With its fast-growing category verticals, the company offers customers across North America more than 10,000 plant-based products.
In addition to offering meal and indoor plant deliveries, PlantX currently has plans underway to expand its product lines to include cosmetics, clothing and its own water brand - but the business is not limited to an e-commerce platform. The company uses its digital platform to build a community of likeminded consumers and, most importantly, provide education and its successful enterprise is being built and fortified on partnerships with top nutritionists, chefs and brands.
Contact the author at jon.hopkins@proactiveinvestors.com