Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) has announced the price of its previously announced marketed public offering of units at a price of $0.20 per unit for aggregate gross proceeds of up to $3 million.
The company said intends to use the net proceeds of the offering for the procurement and delivery of its cannabis products to various provincial markets nationally, for the partial repayment of principal and interest on a senior secured convertible note of the company, for general and administrative expenses and for working capital and general corporate purposes.
Each unit will be comprised of one common share in the capital of the company and one common share purchase warrant. Each warrant will be exercisable to acquire one common share at an exercise price of $0.275 per common share for a period of 24 months following the last closing date.
READ: Nextleaf becomes Top 10 supplier of vapes and oils in British Columbia with Glacial Gold
The offering is led by Research Capital Corporation as sole agent and sole bookrunner on a best efforts basis pursuant to the filing of a prospectus supplement to the company's short form base shelf prospectus dated November 23, 2021.
The company has granted the agent an option to purchase up to an additional 15% of the units, and/or the components in the offering on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the last closing date for over-allotment and market stabilization purposes.
The offering is expected to close on or about December 21, 2021, or such other date or dates as the agent and company may agree upon and is subject to the company fulfilling certain conditions and receiving all necessary regulatory and stock exchange approvals.
The units will be offered by way of the Supplement to the Prospectus, to be filed in all provinces of Canada other than Québec, and accordingly will not be subject to a statutory or exchange four-month hold in the offering jurisdictions.
The units may also be offered in the United States on a non-brokered private placement basis on the same terms as the offering under applicable exemptions from the registration requirements of the United States Securities Act of 1933, as amended and applicable state securities laws, and in other offshore jurisdictions provided that no prospectus filing or comparable obligation arises.
Nextleaf is a federally regulated producer of cannabis oil that distributes CBD and THC vapes and distilled oils under its award-winning prohibition-era brand, Glacial Gold.
The company's patented closed-loop automated extraction plant in Metro Vancouver efficiently transforms cannabis and hemp grown in British Columbia and throughout Canada into high-purity cannabis distillate at an industrial scale.
Nextleaf is developing proprietary delivery technology and formulations through its Health Canada Research Licence with sensory evaluation of cannabis via human testing. The company owns 17 US patents and has been issued 95 patents globally.
Contact the author at jon.hopkins@proactiveinvestors.com