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.
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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.
