Despite extremely low daily average volume, Nova Cannabis (TSX: NOVC) is looking to raise funds via an at the market financing to fund its operation. The financing was announced by the firm late on Friday night.
The financing, which will be conducted via ATB Capital Markets, will see the company raise up to $20 million in gross proceeds via the sale of common shares directly on the Toronto Stock Exchange at prevailing market prices. The program is said to be valid until the earlier of the firms prospectus being withdrawn, the financing fulfilled, or the program is terminated.
Proceeds from the program are to be used to financing growth opportunities, for capital expenditures, to pay off debt, as well as for working capital and general corporate purposes.
The firm did not indicate how many shares it is permitted to sell each day under the program. However, Nova Cannabis currently trades on average just 15,841 shares per day – providing little opportunity for the company to raise funds via the sale of shares on the exchange.
Nova Cannabis last traded at $0.55 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.