Nextleaf Solutions Ltd (CSE:OILS, OTCQB:OILFF) has announced the closing of its previously announced marketed public offering of units of the company for aggregate gross proceeds of $3,168,841.60 including the partial exercise of the over-allotment option.
Under the offering, the company issued 15,844,208 units at a price of $0.20 per unit. Each unit is comprised of one common share in the capital of the company and one common share purchase warrant. Each warrant is exercisable to acquire one common share at an exercise price of $0.275 per common share until December 22, 2023.
The company said it 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.
READ: Nextleaf becomes Top 10 supplier of vapes and oils in British Columbia with Glacial Gold
Research Capital Corporation acted as sole agent and sole bookrunner for the offering on a best efforts basis under the filing of a prospectus supplement dated December 15, 2021, to the company's short-form base shelf prospectus dated November 23, 2021.
In connection with the closing, the company paid the agent and certain members of the selling group an aggregate cash commission of $183,835.25, issued the agent and certain members of the selling group an aggregate of 849,504 non-transferable broker warrants, and issued the agent an aggregate of 500,000 common shares as a corporate finance fee. Each broker warrant entitles the holder to acquire one unit at an exercise price equal to the offering price at any time prior to 5.00pm Toronto time on the expiry date of the warrants.
Insiders of the company purchased an aggregate of 300,000 Units under the offering.
Nextleaf is a federally regulated producer, manufacturer, and distributor of cannabis vapes and distilled oils under its prohibition-era brand, Glacial Gold. The company's multi-patented ingredient processing technology transforms cannabis and hemp biomass into high-purity distillate at an industrial scale.
Nextleaf supplies THC and CBD oils to qualified wholesale partners across Canada. The company develops proprietary delivery technology and cannabinoid-based 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 over 95 patents globally.
Contact the author at jon.hopkins@proactiveinvestors.com