Decibel Cannabis Company To Raise $10M Via Bought Deal Unit Offering With Eight Capital, Haywood Securities And Raymond James

Cannabis producer Decibel Cannabis Company Inc. DB DBCCF announced  Thursday a $10 million bought deal unit offering. The Calgary, Alberta-based company reported it has signed an agreement under which Eight Capital, Haywood Securities Inc. and Raymond James Ltd., as co-lead underwriters and joint bookrunners, will purchase 34.5 million units of the Company, on a “bought deal” basis at a price per unit of $0.29 for gross proceeds of $10 million.

Offering Details

Each Unit shall be comprised of one common share in the capital of the company and one-half of one common share purchase warrant. Each Warrant shall entitle the holder thereof to purchase one Share at an exercise price of $0.40 for a period of 36 months following the closing date of the Offering.

Decibel has agreed to grant the underwriters an over-allotment option to purchase up to an additional 15% of the units at the issue price, and/or the components thereof, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this over-allotment option is exercised in full, approximately $1.5 million of additional gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the Offering will be approximately $11.5 million.

The company intends to use the net proceeds of the offering for growth initiatives, working capital and general corporate purposes.

The closing date of the Offering is scheduled to be on or about September 16, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

More recent news from Decibel:

Decibel Cannabis Company Reports Record Adjusted EBITDA Of $2.1M In The Second Quarter

Cannabis Co. Decibel Posts Record Performance Of Cannabis Derivative Products, Upsizes Authorized Overdraft

Decibel Touts 500% Revenue Spike For First Half Of 2020

Price Action

Decibel’s shares closed Thursday’s market session at 26 cents per share

Photo: Courtesy of Jeff W on Unsplash