Decibel Cannabis Co. Raises $15M Via Bought Deal Unit Offering With Eight Capital, Haywood Securities And Raymond James

Cannabis producer Decibel Cannabis Company Inc. DB DBCCF has secured $15 million in financing via its previously announced bought deal prospectus offering of 51.75 million units at 29 cents per unit.

The Calgary-based company said Thursday it has closed the transaction conducted by Eight Capital, Haywood Securities Inc., and Raymond James Ltd, as co-lead underwriters and joint book-runners.

Each unit is comprised of one common share of Decibel and one-half of one common share purchase warrant, which enables the holder to buy one share at 40 cents in three years following the closing date of the offering.

In addition, warrants will be listed and posted for trading on the TSX Venture Exchange under the symbol "DB.WT.A" on Friday, September 17.

The offering includes the full exercise of the over-allotment option granted to the underwriters.

The underwriters received a cash commission equal to $900,450. In addition, the company issued a total of 3.1 million broker warrants to the underwriters, with each warrant being exercisable into one share at the issue price in two years following the closing of the transaction.

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

Price Action

Decibel's shares traded 0.65% lower at $0.2049 per share at the time of writing Thursday morning.

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