Under the offering’s terms, the cannabis company issued 10 million units at C$0.45 per unit, which each consist of one common share and one share purchase warrant. Each warrant allows for the purchase of one share at a price of $0.50 per share for a period of 24 months following today’s closing date of the offering, subject to 1933’s acceleration right.
The offering, which will be used for general working capital, was fully subscribed by Rosen, a co-founder and former CEO of PharmaCan Capital Corp, which underwent a rebranding to become Cronos Group Inc.
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“We are extremely pleased to welcome Paul as a strategic investor in the company,” said Mr Brayden Sutton, 1933’s CEO in a statement. “Paul has been involved with some of the most iconic cannabis businesses in Canada and across the world. … Paul shares our view of the rising opportunities in the US as more states develop regulations and open up cannabis markets.”
Rosen is also the founder and former CEO & Chairman of Tidal Royalty Corporation and sits on the boards of iAnthus Capital Holdings, Hill Street Beverages and High Tide Ventures.
Headquartered in Vancouver, 1933 Industries is a cannabis company with operations in the United States and Canada. Operating via three subsidiaries, 1933 owns licensed medical and recreational cannabis cultivation and production assets, hemp-based, CBD infused products, CBD extraction services and a specialized cannabis advisory firm.
The company owns 91% of both Alternative Medicine Association and Infused MFG and 100% of Spire Global Strategy.
1933 shares were trading 2% higher at C$0.52 in Canadian trade on Friday morning.
Contact Ellen Kelleher at [email protected]