Decibel Cannabis Company Inc. DB DBCCF has completed the second and final closing of its previously announced non-brokered private placement of its common shares at $0.06 per common share.
What Happened
The company said on Monday that, at the second closing of the offering, it issued 19,647,776 common shares for gross proceeds of roughly $1,178,867.
The second closing was in addition to the previously announced first closing in November when Decibel issued 33,503,864 common shares for gross proceeds of approximately $2,010,232.
Read Also: Decibel's $10M Strategy: How It Could Enhance Your Canadian Cannabis Portfolio
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Why It Matters
Decibel said the proceeds of the offering will be used to work on and help integrate the integration of AgMedica BioScience Inc. which he company previously acquired. The acquisition was arranged through an agreement with Callisto Capital on Oct. 28 and was made in exchange for a $6.3 million unsecured convertible debenture.
Decibel projects that AgMedica could contribute $30 million of net revenue and $4 million of EBITDA in 2025, totaling an anticipated $130 million of net revenue and $25 million of adjusted EBITDA in 2025 on a pro forma basis.
The company recently announced its unaudited interim financial results on Thursday for the third quarter revealing CA$24.1 million ($17.2 million) in net revenue representing a 9% increase sequentially, but a 12% decrease year-over-year. However, gross margin before fair value adjustments reached 53% for the period, up from 44% in the prior year’s period, reflecting improved operational efficiency.
What's Next
The offering is subject to the receipt of all regulatory approvals including the final approval of the TSX Venture Exchange (TSXV).
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DBCCF Price Action
Decibel's shares traded 1.45% higher at $0.0476 per share after the market close on Friday afternoon.
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