Heritage Cannabis Announces Overnight Offering, Pricing Not Yet Set

Heritage Cannabis (CSE: CANN) is halted this morning following the announcement last night that it intends to conduct an overnight marketed public offering of units. Details released yesterday were slim, with the company not providing a size for the financing as of yet.

What is known about the company is that the offering is to see units of the company sold consisting of one common share and one common share purchase warrant. Each warrant is to be valid for a period of two years from the date of issuance, however pricing was not yet provided. Upon closing, the company intends to apply to list the warrants on the CSE.

The offering is to be conducted on a best efforts base by a syndicate of agents, co-led by Cormark Securities and Cantor Fitzgerald. A 15% over-allotment option is expected to be issued in connection with the financing.

Net proceeds of the financing are to be used to purchase biomass, packaging materials and equipment, for product development, as well as the standard working capital and general corporate purposes.

The financing is currently anticipated to close by February 17, 2021.

Heritage Cannabis last traded at $0.165 on the CSE.

Information for this analysis was found via Sedar and Heritage Cannabis. 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.

Leave a Reply