Ionic Brands Corp today announced it has entered into an agreement with Clarus Securities to lead a syndicate of agents for up to C$20,000,000 through an offering of up to 20,000 units at $1,000 per Unit.
Each unit will consists of:
(i) $1,000 principal amount of 8.0% unsecured debentures convertible into common share at 75c.
(ii) A full warrant. 1,333 common share purchase warrants per above unit excercisable at 90c with a duration of 3 years.
In addition, the company will be raising $3,000,000 more of the same units (3,000 units) in a non brokered financing.
The key thing here from the release,
the proceeds from the offering will be used for strategic acquisitions and for general corporate working capital purposes.
In case you haven’t been following the story. Ionic Brands is a national cannabis holdings company based in Washington. The company is focused on building a portfolio of concentrate focused cannabis brands across the US. Their top cornerstone brand is IONIC the #1 vaporizer brand in Washington State aggressively expanding throughout the west coast.
FULL DISCLOSURE: Ionic Brands Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been paid for this work and may or may not own shares of the company. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.