Greenway Greenhouse Cannabis To Raise $8M Via Non-Brokered Private Placement Of Units

Greenway Greenhouse Cannabis Corporation GWAY announced Wednesday that it's looking to raise $8 million via a non-brokered private placement of its 7.27 million units at $1.1 per unit.

The Kingsville, Ontario-based company stated that each unit would consist of one common share in the company's capital and one common share purchase warrant. Each warrant was exercisable for one common share at $1.65 for nine months from the date of issuance.

The offering is expected to close on or before December 15, subject to certain conditions, including, but not limited to, the receipt of approval of the CSE.

Greenway Greenhouse has signed an exclusive fiscal advisory agreement with Abingdon Capital Corporation, an exempt market dealer, to advise the company for this private placement as well as for ongoing capital markets advice. 

The net proceeds from the offering are intended to be used for capital expenditures for additional greenhouse acreage, general working capital requirements and other corporate purposes.

Subject to the minimum requirements of the Canadian Securities Exchange, Greenway Greenhouse has agreed to exercise reasonable commercial efforts to list the warrants on the CSE at the end of the applicable four-month statutory hold period.

"We are pleased to offer the private placement to existing and new shareholders of the Company, to broaden the shareholder base and increase the profile of the Company," Darren Peddle, director and CFO said. "As a new public company, we are pleased with the reception from public investors, and we look forward to furthering our business plan with the net proceeds of this Offering."