Harvest Health & Recreation (CSE: HARV) has closed the first tranche of a previously announced secured note financing. The tranche has seen approximately US$94 million in funding come through for the multi state operator, with the indication of it being a first tranche suggesting that more funding is on the way.
The financing, which was originally announced on December 6, provided two methods for investors to take part. The first was via 15% senior secured notes, while the other was via units that have a rate of 9.25% and 109 warrants per US$1,000 unit that are convertible at a price of C$3.66 for a period of three years.
Under the first tranche, investors have subscribed for US$73 million via the senior secured notes, while an additional $21 million was subscribed to via the units offered.
The financing originally was announced with US$90 million in commitments from a group of lead investors. Its unclear how much additional funding is anticipated to occur in subsequent tranches, however the use of tranches suggests further interest from investors is present.
Harvest Health & Recreation last traded at $3.08 on the Canadian Securities Exchange.
Information for this briefing was found via Sedar and Harvest Health and Recreation. 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.
US Cannabis, Momentum, With Lots of Hurdles
The US Cannabis market has been a confusing ride for investors to comprehend. We have...