Numinus Wellness Halts Stock For Trading Day To Announce $17 Million Financing Closing
After halting trading in its equity all day, Numinus Wellness (TSXV: NUMI) this evening finally released the much awaited news: the company has closed its $17.3 million financing. While not exactly the news hopeful shareholders were looking for, the closing of the financing appears to be the justification for the day-long halt.
The financing saw 25.4 million units of the company sold at a price of $0.68 each, with each unit containing one common share and one half of a common share purchase warrant. Each warrant is valid for a period of two years from the date of issue, with an exercise price of $0.90 per share. 3.3 million units sold under the offering were in connection with the full exercise of the over allotment option on the financing.
Net proceedings from the financing are to be used for clinic upgrades for clinical trials, lab upgrades, clinic acquisitions, R&D of protocols and general working capital.
The financing however did not come cheap, with the firm paying $1.0 million of the gross proceeds to the underwriters, in addition to 1.5 million compensation warrants issued at $0.68 per share, valid for a period of two years. The company also paid a $250,000 corporate finance fee, which was equally split between common shares at $0.68 per share, and cash.
The company also concurrently announced that it has raised $8.9 million in additional gross proceeds from the exercise of warrants and stock options, resulting in the firm having a strong cash position.
Numinus Wellness last traded at $1.25 on the TSX Venture.
Information for this briefing was found via Sedar and Numinus Wellness. 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.
what does this mean exactly for shareholders
This PP was originally announced weeks ago. This NR is only announcing the closing of the PP. In the original NR, they stated it would close Dec 29. How is this justification of the full day halt? Also, the halt has not yet been lifted, so it is highly doubtful it was halted for this NR.