Cannabis Company GABY Raises CA$12.5M To Buy Mankind Dispensary

Cannabis company Gaby Inc. GABY GABLF has raised CA$12.5 million ($9.74 million) in financing, which it plans to put toward completing an acquisition.

The Sonoma County, California-based company completed two private placements: a brokered private placement of the company’s subscription receipts, led by Mackie Research Capital Corporation, and a non-brokered private placement of the company’s units.

GABY plans to use the proceeds to support its merger with Miramar Professional Services, its pro-forma business plan, and standard corporate practices.

"The closing of our Private Placement and the completion of the audit takes us a significant step closer to our expansion into the cannabis retail channel," Gaby founder and CEO Margot Micallef said.

Mankind Dispensary

Miramar Professional Services runs the Mankind Dispensary, which is said to be one of the oldest licensed dispensaries in California.

"Mankind is one of the best known cannabis retailer brands in California, with a strong history operating in San Diego," Micallef added. "I cannot think of a better foundation for our retail expansion strategy than this dispensary and this management team.”

In accordance with the brokered private placement, Gaby has issued 172.93 million subscription receipts at a price of CA$0.05 per receipt.

The gross proceeds from the private placement, not including the required expenses, are held in escrow and await the fulfillment of specific escrow release conditions.

If all conditions are completed on or before May 5, the net proceeds will be released to Gaby.

If the merger is not finalized on or before May 5, the purchase price for the receipts will be returned to subscribers.

Pursuant to the non-brokered private placement, Gaby has issued 84.140 million units – each comprising of 1) one Gaby share; and 2) one warrant. Each warrant enables the holder to buy one share of the company at a price of CA$0.09 in the following two years since the date of the issuance.