Medipharm Labs (TSX: LABS) this evening announced that it will be conducting a bought deal financing. The financing will see the company raise $20.0 million in a deal lead by Cantor Fitzgerald.
The financing will see the company raise funds at a price of $0.58 per unit, with a total of 34.5 million units expected to be sold. Each unit is to consist of one common share and one common share purchase warrant. Each warrant is valid for a period of 24 months from the date of issuance, and contains an exercise price of $0.70 per share.
An over-allotment option has also been granted in connection with financing, valid for a period of 30 days following the closing of the offering.
Net proceeds from the financing are to be used for growth of the firms cannabis 2.0 product portfolio, to expand its current export portfolio, pharmaceutical registrations, R&D, sales and marketing, as well as working capital and general corporate purposes.
The financing is currently slated to close March 5, 2021.
Medipharm Labs last traded at $0.68 on the TSX.
.Information for this briefing was found via Sedar and Medipharm Labs. 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.
