James Wagner Finally Closes Financing With Final Tranche

James E Wagner Cultivation (TSXV: JWCA) this morning announced that they have finally closed their struggling private placement. Originally set to be up to $7.5 million in size, the final closing size of the financing came in significantly under the firms target, at $2.3 million.

The fourth and final tranche of the raise itself raised a total of $500,000, of which the entire amount appears to have been subscribed to be Canopy Rivers (CSE: RIV) based on a filing made by the firm this morning. The tranche saw a total of 2.3 million units sell at a price per unit of $0.21. Each unit consists of one common share, and one half warrant with an exercise price of $0.275 and an expiry of three years.

As a result of the financing, Rivers total ownership of James Wagner has increased to a total 15.0% on an undiluted basis, with the firm holding 16,241,819 common shares. When combined with the 2,190,476 common share purchase warrants Rivers holds, the firm has control of 16.7% of the company on a partially diluted basis.

Total insider involvement in the $2.3 million financing amounted to $837,649.76, or approximately 36% of the total funding.

Proceeds of the financing are stated to be going towards general corporate purposes and for the development of the firms second cultivation facility as well as its farmgate retail store.

James E Wagner Cultivation last traded at $0.20 on the TSX Venture.


Information for this analysis was found via Sedar, and James Wagner Cultivation. The author has no securities related to this organization. James Wagner Cultivation was previously a client of CanaCom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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