Charlotte’s Web Announces $67.5 Million Financing

Charlotte’s Web Holdings (TSX: CWEB) announced this morning that it will be conducting an underwritten offering for gross proceeds of $67.5 million. The financing is being lead by Canaccord Genuity in a syndicate of that includes Cormark Securities, PI Financial, and Eight Capital.

The financing will see 10.0 million units of Charlotte’s Web sold at a price of $6.75 per unit. Each unit consists of one common share and one half common share purchase warrant, exercisable for a period of two years with a strike price of $8.50 per full warrant.

An over-allotment, as always, is present as well, for an additional 1.5 million units, which if exercised in full would increase the offering to $77.6 million. Proceeds from the offering are expected to be used to fund business development and general working capital.

Closing of the offering is expected to occur on June 18, 2020.

Charlotte’s Web closed yesterdays session at $7.32, after having hitting a high of $8.00 intraday.

Information for this briefing was found via Sedar and Charlotte’s Web Holdings 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.

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