Cannabis company The Flowr Corp. FLWPF raised a total of $15.9 million by selling units.
Under the bought deal offering, the Toronto-based company issued 31.13 million units with a price of 51 cents per unit.
Cantor Fitzgerald Canada Corp. was the only bookrunner and the lead underwriter, while ATB Capital Markets Inc., Canaccord Genuity Corp., and Echelon Wealth Partners Inc. were the remaining underwriters.
Each unit from the offering contains one share of the company and one full share purchase warrant. Each warrant enables the holder thereof to buy one share at a price of 64 cents per share in the next two years.
Under the partial exercise of the over-allotment option given to the underwriters, extra 3.27 million units remain exercisable by the underwriters at the issue price, in the following thirty days.
Flowr noted that the underwriters were paid a cash amount equivalent to 7% of the collected gross proceeds and obtained unit purchase warrants of the company, equivalent to 6% of the number of units sold. Each underwriter’s warrant enables the holder to buy one share at the issued price in the next two years.
The company plans to utilize the net proceeds from the offering for standard corporate activities.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving – don’t get left behind!
Curious about what’s next for the industry and how to leverage California’s unique market?
Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!
Get your tickets now to secure your spot and avoid last-minute price hikes.