Namaste Sells Units, Collects Gross Proceeds Of CA$23M

E-commerce cannabis platform Namaste Technologies Inc. N NXTTF closed its “bought deal” public offering, collecting total gross proceeds of CA$23 million.

The Toronto-based company sold 65.78 million of its units with a price of CA$0.35 per unit, including 8.58 million units sold following the exercise in full of the underwriter’s over-allotment option.

Canaccord Genuity Corp. and Haywood Securities served as underwriters. They obtained a cash fee that equals 6% of the total gross proceeds of the offering and were also provided with compensation options that match 6% of the total number of units sold under the offering.

Each unit from the offering is comprised of one share and one share purchase warrant, which enables the holder with the right to buy one share at a price of CA$0.47 per share before January 19, 2024. What’s more, the TSX Venture Exchange has authorized the warrants for listing, and they should start trading this week under the ticker symbol “N.WT.B.”

Namaste said it plans to utilize the collected net proceeds to support its progress and business expansion, and also for working capital and standard corporate activities.