Delta 9 Cannabis Inc said it has entered into an agreement with Research Capital Corporation, as sole agent and sole bookrunner, in connection with an overnight marketed public offering of units at a confirmed price of $0.22 each priced in the context of the market, for gross proceeds of approximately $2 million.
The company said the net proceeds from the offering will be used for working capital and general corporate purposes.
Each unit in the offering shall be comprised of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an indicative exercise price of $0.255 each, priced in the context of the market, for a period of 36 months following the closing of the offering.
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The company said it has granted to the agent an option to increase the size of the offering by up to an additional number of units, and/or the components thereof, that in aggregate would be equal to 15% of the total number of units to be issued under the offering, to cover over-allotments, if any, and for market stabilization purposes, exercisable at any time and from time to time up to 30 days following the closing of the offering.
The closing of the offering is expected to occur on or about June 14, 2022, or such other earlier or later date as the agent and company may agree upon.
Closing is subject to the company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, US persons absent registration or an applicable exemption from US registration requirements and applicable US securities laws.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market.
The company's wholly-owned subsidiary, Delta 9 Bio-Tech Inc, is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada.
Delta 9 also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
-- Adds confirmed offering price, no longer indicative --
Contact the author at jon.hopkins@proactiveinvestors.com