Aleafia Health (TSX: ALEF) is the latest firm within the cannabis space to conduct a bought deal offering, announcing this morning that it would be conducting a $13.0 million financing. Eight Capital is the sole bookrunner on the capital raise.
The financing will see 20,000,000 units sold at a price of $0.65 per unit, with each unit consisting of one common share and one half warrant. Each warrant is valid for three years and contains an exercise price of $0.80 per common share. A 15% over-allotment option has also been granted that if exercised would bring the total value of the financing to $14.95 million.
Under the bought deal financing agreement, Aleafia Health has agreed to pay a cash fee to Eight Capital of 6.5%, in addition to providing compensation warrant coverage equal to 3.5% of the total units sold.
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The financing is anticipated to close by May 29, with Aleafia indicating that it will use the funds for working capital and general corporate purposes.
Aleafia Health last traded at $0.76 on the TSX.
Information for this briefing was found via Sedar and Aleafia Health Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
