The Supreme Cannabis Company (TSX: FIRE) this afternoon announced that it will be raising $22.5 million via a bought deal offering. Lead by BMO Capital Markets, the offering is expected to close later this week.
Units will be sold at a price of $0.31 per each under the terms of the offering, with each unit consisting of one common share and one half of a common share purchase warrant. Each warrant is valid for a period of three years from the date of issuance, with an exercise price of $0.40 per share.
An over allotment option has also been granted in connection with the offering, valid for a period of 30 days following the close of the transaction.
Net proceeds from the financing are to be used to fund growth initiatives, strategic opportunities, along with working capital and general corporate purposes.
The financing is expected to close February 19, 2021.
Supreme Cannabis last traded at $0.35 on the TSX and remains halted, likely signaling an upsize to the financing.
Information for this analysis was found via Sedar and Supreme Cannabis. 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.
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.