Cannabis company The Flowr Corp. FLWPF raised a total of $15.9 million by selling units.
Under the bought deal offering, the Toronto-based company issued 31.13 million units with a price of 51 cents per unit.
Cantor Fitzgerald Canada Corp. was the only bookrunner and the lead underwriter, while ATB Capital Markets Inc., Canaccord Genuity Corp., and Echelon Wealth Partners Inc. were the remaining underwriters.
Each unit from the offering contains one share of the company and one full share purchase warrant. Each warrant enables the holder thereof to buy one share at a price of 64 cents per share in the next two years.
Under the partial exercise of the over-allotment option given to the underwriters, extra 3.27 million units remain exercisable by the underwriters at the issue price, in the following thirty days.
Flowr noted that the underwriters were paid a cash amount equivalent to 7% of the collected gross proceeds and obtained unit purchase warrants of the company, equivalent to 6% of the number of units sold. Each underwriter’s warrant enables the holder to buy one share at the issued price in the next two years.
The company plans to utilize the net proceeds from the offering for standard corporate activities.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.