Wildpack Beverage Inc. (TSXV: CANS) announced this morning that it is increasing its previously announced bought deal offering entered with Stifel Nicolaus Canada. The gross proceeds of the transaction as a result are to increase from $15.0 million to $17.4 million.
The bought deal offering consists of convertible debentures, each priced at $1,000 per debenture. Each debenture unit bears interest at 8%, and matures in 4 years. Each debenture is convertible into common shares at $1.51 per share. Unit will also contain 332 common share purchase warrants where each warrant is exercisable to purchase one common share at $1.81 per share within two years.
Wildpack Beverage will also grant Stifel an over-allotment option to purchase an additional 15% of the debenture units being offered within 30 days following the closing date. Should this option be exercised, the gross proceeds are expected to grow to $20.0 million.
The company previously relayed that the proceeds from the offering are intended for strategic acquisitions, capital expenditures for capacity expansion, working capital, and general corporate requirements.
The offering is expected to close June 30, 2021, subject to customary and regulatory approvals.
Wildpack Beverage Inc. last traded at $1.14 on the TSX Venture.
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