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.
Sponsored · Selkirk Copper Mines
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.
Why Public Cannabis CFOs Need to Breakdown and Segment Their Accounts Receivables
Limited Disclosures Risk Signaling Poor Financial Health to Analysts and Investors The ‘accounts receivable to...