Harvest Health Increases Bought Deal To C$40 Million
It seems our article in connection to US cannabis financing yesterday was quite timely. After the bell yesterday, Harvest Health and Recretion (CSE: HARV) announced a C$30 million bought deal financing. This morning, the financing was upsized significantly, with the total raise now to be C$40 million in size.
The financing will see units of the company sold at a price of $2.26 each, with units consisting of one subordinate voting share of the company and a half warrant. Each warrant is good for a period of 30 months from the date of issue, with an exercise price of $3.05 per share. Warrants have an acceleration clause as well, with the expiry date able to be accelerated if the volume weighted average price of the company exceeds $4.97 for ten consecutive days.
A total of 17,699,200 units are expected to be sold of the company, however a 15% over-allotment option has been issued as well. If exercised in full, the over-allotment would bring the total financing to $46.0 million.
Proceeds from the financing are to be used for working capital and general corporate purposes. The financing is expected to close by October 28, 2020.
Harvest Health last traded at $2.52 on the CSE.
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.
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.
