Columbia Care Inc. CCHW CCHW CCHWF 3LP is poised to secure up to $74.5 million in financing through a private placement of 6% secured convertible notes.
The move comes just days after Columbia Care's purchase of vertically integrated cannabis company Medicine Man Denver in a $42 million cash and stock deal.
The notes represent Columbia Care’s senior secured obligations with interest payable semi-annually in arrears. In addition, the notes will mature on June 29, 2025, or four years following the closing of the offering, which is expected on June 29, 2021.
The offering is conducted under an agreement between the New York-based company and a syndicate of agents.
The notes, in the principal amount of $1000, are worth 154 common shares of the company at $6.49 per share.
Columbia Care intends to utilize the proceeds from the offering for working capital and general corporate purposes.
The company has the right to redeem the notes, either in whole or in part on or after June 29, 2023.
Canaccord Genuity agreed to act as sole book-runner and co-lead agent alongside ATB Capital Markets, while A.G.P./Alliance Global Partners will provide financial counsel.
Columbia Care’s Recent Moves
Earlier this year, the company raised some CA$130 million ($102.5 million) through a bought deal offering with Canaccord Genuity.
Some of its recent moves include introducing a solid-fill cannabis powder capsule for medicinal use under the Ceed trademark in the United Kingdom and acquiring a 34-acre cultivation facility in New York in a $42.5-million stock-and-cash deal.
Nicholas Vita, CEO of Columbia Care, recently said the company recognizes the “tremendous opportunity” and continues to deepen its “state, regional and national footprint by adding scale to capitalize on the additional upside in rapidly expanding medical programs and, in particular, in markets transitioning to adult-use across the country.”
Photo by Kym MacKinnon on Unsplash
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