Heritage Cannabis (CSE: CANN) has secured further financing. The company last night announced that it has secured funds from Merida Capital, which will be used to finance its entrance into the state of Missouri.
Under the definitive agreement entered within with Merida Capital Partners, whom is investing in the company under its third and fourth fund, Heritage has secured an aggregate figure of US$1.5 million. The funding comes via a note and warrant purchase agreement.
The promissory note amounts to US$0.66 million, and contains an expiry date of October 18, 2023. It bears interest at a rate of 15% per annum, which are to be paid in common shares of the company. Shares are to be issued at the greater of 90% of the firms average weighted volume price for five trading days, and the minimum price per common share as per securities regulations.
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The principal may also be repaid in shares of the company, at the greater of $0.07 per share and the closing market price of the equity prior to the announcement of the conversion.
Warrants of the company have also been issued in connection with the debt, with the warrants issued to both funds amounting to 50% of the aggregate number of shares expected to be received on the full conversion of the note.
A commitment fee of 696,942 common shares was issued in connection with the transaction.
Funds generated from the transaction are to be used to fund Heritage’s operations in the state of Missouri, where it is currently in the process of a buildout for 3Fifteen Primo Cannabis. The company is expected to begin generating revenue in the state in Q1 2022.
Heritage Cannabis last traded at $0.07 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.
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