Meta Growth Conducts Bought Deal At Significant Discount To Market

Meta Growth (TSXV: META) is the latest firm within the cannabis space to conduct a financing. The difference however, is that the pricing of the financing is currently below market pricing of the equity, and that the warrant is nearly in the money as well.

The price of the offering has been controversial for current shareholders, as its at a discount in excess of 18% of the current price of the equity on public markets. The full warrant included with the financing is also nearly in the money as well, and follows the news of the company failing to reach an agreement to sell off its medical division. Additionally, the firm secured $11.0 million just last month through a loan with Opaskwayak Cree Nation.

The financing, announced after market hours yesterday evening, is being conducted on a bought deal basis by Echelon Wealth Partners, for a total figure of $10.0 million. The deal will see over 45 million units sold at a price of $0.22 per unit, which also comes with a full common share purchase warrant at $0.29. Each warrant has a maturity of 36 months from the date of closing.

As a part of the arrangement, Echelon also has the option for an over-allotment purchase for up to 15% of the original financing. The firm will receive a fee of 7% of gross proceeds as a result of conducting the bought deal financing.

Funds raised from the offering will be utilized for expanding Meta Growth’s Ontario retail presence, as well as for working capital and general corporate purposes.

The financing is expected to close on or around February 6, 2020.

Meta Growth last traded at $0.27 on the TSX Venture.


Information for this briefing was found via Sedar and Meta Growth. 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.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Meta Growth Postpones Q3 Results, Acquires Two Ontario Retailers

The price of recreational cannabis operations appears to be falling as of late. Meta Growth...

Monday, July 20, 2020, 08:31:55 AM

High Tide, Meta Growth To Merge In All Stock Transaction

High Tide (CSE: HITI) and Meta Growth Corp (TSXV: META) jointly announced this morning that...

Friday, August 21, 2020, 11:10:02 AM

Meta Growth Halt Is Much Ado About Nothing

It appears that the day-long trading halt of Meta Growth (TSXV: META)‘s equity was much...

Thursday, February 6, 2020, 04:14:07 PM

National Access Cannabis to Change Name to Meta Growth, Sells Non-Core Assets

National Access Cannabis (TSXV: META) announced this morning that it will be changing its name...

Friday, November 1, 2019, 09:27:35 AM

Meta Growth Sees Shareholders Approve Merger With High Tide

The shareholders of Meta Growth Corp (TSXV: META) have officially approved of the proposed merger...

Wednesday, October 28, 2020, 08:14:08 AM