Body And Mind Completes Oversubscribed Financing: 'We Are Extremely Pleased'

Multistate cannabis operator Body and Mind Inc BMMJ said Monday that it closed its previously announced private placement offering with M. Partners Inc for 11,780,904 units of the company at a price of CA$1.25 (93 cents) per unit. 

The gross proceeds from the offering are CA$14.7 million ($10.9 million). 

Each unit represents one common share of Body and Mind and one common share purchase warrant of the company. Each warrant can be acquired at CA$1.50 per share for 48 months following the closing date, subject to adjustment in certain events.

M. Partners will serve as lead agent, according to Body and Mind. A syndicate of agents, including PI Financial Corp., are also involved, the company said. 

Why It Matters

"The financing was originally planned for gross proceeds of up to CAD$10 million and we are extremely pleased with the increased interest which will allow us to accelerate our growth as a multi-state operator," Robert Hasman, director of BaM and president of Nevada Medical Group, said in a statement. 

In addition to Nevada, Body and Mind owns assets in California, Ohio and Arkansas.

What’s Next

The cannabis MSO said it plans to use its net proceeds from the offering to expand its production capacity, build out dispensaries, expand operations and for working capital and general corporate purposes.

“We look forward to advancing our numerous projects including facility expansion and construction, optimization, state licensing opportunities and acquisitions,” Hasman said. 

Over-the-counter Body and Mind shares were down 3.47 percent at $1.95 at the time of publication Monday. 

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