Auxly Cannabis To Conduct $10.0 Million Bought Deal Financing
Auxly Cannabis (TSXV: XLY) is evidently in need of funds yet again. The company this morning announced a bought deal private placement to raise gross proceeds of $10.0 million. The offering is being conducted by Mackie Research, who is sole underwriter and bookrunner on the transaction.
The financing will see a total of 33,333,400 units of the company sold at a price of $0.30 per unit. Each unit is to contain one common share and one half warrant, with the warrant being valid for a period of three years from the date of closing. Each warrant can be exchanged for a common share at an exercise price of $0.40 per share.
An over-allotment option on the financing has also been granted, enabling the financing o increase by up to 15% if exercised.
Net proceeds from the offering are to be used for working capital and general corporate purposes. The financing is expected to close by December 11, 2020.
Auxly Cannabis last traded at $0.36 on the TSX Venture.
Information for this briefing was found via Sedar and Auxly Cannabis Group Inc. The author has no 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
