Marijuana Company LEEF Brands Consolidates Shares, Launches $1.8M Private Placement To Fuel Expansion

Cannabis company – LEEF Brands, Inc. LEEF LEEEF announced a 10-for-1 share consolidation of its common shares and a proposed private placement to raise up to CA$2.5 million ($1.8 million).

"This share consolidation and concurrent financing will improve our capital structure and provide the company with the necessary resources to accelerate our growth plans," stated Micah Anderson, CEO of LEEF Brands. "We believe these initiatives will attract a broader investor base, enhance liquidity, and help unlock shareholder value as we continue to expand our presence as a large-scale producer of cannabis concentrates."

Share Consolidation Details

The company's issued and outstanding common shares will be consolidated based on ten pre-consolidation shares for one post-consolidation share. The consolidation aims to improve the company's capital structure, increase its attractiveness to institutional investors, and provide a more stable trading platform.

Upon completion of the consolidation, LEEF will have approximately 162,762,651 common shares issued and outstanding, subject to rounding adjustments. The consolidation will take effect Nov. 18, 2024 with trading expected to begin on a consolidated basis on the Canadian Securities Exchange and OTCQB on Nov. 18th, 2024.

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Private Placement Financing

Concurrent with the consolidation, LEEF Brands is undertaking a private placement to raise gross proceeds of up to CA$2.5 million through the issuance of up to 10 million units. Each unit will be priced at $0.25 (post-consolidation) and will consist of one common share and one common share purchase warrant.

Each Warrant will entitle the holder to purchase one additional share of the company at a price of $0.40 (post-consolidation) for a period of two years. The warrants will include an acceleration clause, whereby, at the company's election, the warrants may be called for redemption if the company's common shares trade at or above CA$0.60 for 10 consecutive business days.

Proceeds from the financing will be used to drive growth, with a focus on completing the farm and pursuing new market opportunities.

Closing of the financing remains subject to CSE approval and other customary conditions.

Price Action

LEEF Brand shares closed Tuesday's market session 0.56% higher at 0.0180 per share.

Read Next:

• LEEF Brands Cannabis Co. Is Cash Flow Positive For Third Consecutive Quarter, Reduced Net Loss

Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay