PharmaCann Borrows Additional $40M Via Private Offering Of 12% Senior Secured Notes

PharmaCann Inc., a vertically integrated marijuana company finalized an additional issuance of a 12% senior secured note due June 30, 2025. The Chicago-based operator reported Thursday that net proceeds from the upsize were around $39.5 million, after the original issue discount and other estimated offering expenses that will be used for strategic growth opportunities and general corporate purposes.

With this additional issuance, the total principal amount of notes outstanding was $125 million.

In June 2021, PharmaCann completed the initial transaction, borrowing a total of $85 million, including the original issue discount and other estimated offering expenses. At the time, the company said it plans to utilize the proceeds to fund strategic growth opportunities and for general corporate purposes.

Canaccord Genuity Corp. served as financial counsel to PharmaCann while legal advisors were Fox Rothschild LLP and Dentons Canada LLP.

The notes were offered and sold only to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. They have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction. Unless they are registered, the notes may be offered and resold only in transactions that are exempt from registration under the Securities Act and applicable state securities laws.

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