Willow Biosciences (TSX: WLLW) on Friday closed their previously announced bought deal financing. The company raised a total of $28.8 million in gross proceeds, which includes the full exercise of the over-allotment option issued in connection with the offering.
The financing saw the company sell common shares of the company at a price of $1.65 per each, with no warrant being included in the offering. A total of 17.4 million shares were issued in connection with the financing. Notably, the company indicated that the offering was “comprised primarily of existing cornerstone shareholders and new institutional buyside funds.”
Proceeds from the financing are to be used to expand market access for the firms cannabinoids portfolio, to add to its current manufacturing capacity, and for working capital and general corporate purposes.
“The strong cash position of Willow allows us as an organization to have significantly more negotiating leverage with potential business development opportunities. With commercialization of our first cannabinoid expected to occur in Q1 2021, marking the final step in our transition to becoming a revenue generating company, we are in a very strong position to generate value for Willow stakeholders.”
Trevor Peters, CEO of Willow Biosciences
Willow Biosciences last traded at $1.72 on the TSX.
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