Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) reported that it intends to issue up to 86 million units of the company in an equity financing at a price of $0.14 per unit, for total gross proceeds of up to $12,040,000.
Heritage Cannabis said it plans to use the net proceeds to purchase additional biomass, packaging materials and equipment, product development and for working capital and general corporate purposes.
The company noted that the units being offered will consist of one common company share plus one common share purchase warrant, allowing the holder to purchase one common share of the company at any time for a period of 24 months following closing of the offering at an exercise price of $0.21 per common share.
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Heritage added that it intends to apply to the Canadian Securities Exchange (CSE) to list the warrants on the CSE, subject to satisfying all conditions to listing.
The offering will be conducted on a "best efforts" basis by a syndicate of agents co-led by Cantor Fitzgerald Canada Corporation and Cormark Securities Inc, which will receive a cash commission equal to 7.0% of the gross proceeds of the offering, together with broker warrants to purchase up to 7.0% of the number of units sold in the offering.
The offering is expected to close on or about February 17, 2021, or such other date as the company and the agents may agree.
Heritage Cannabis is a vertically-integrated cannabis provider that currently has two Health Canada-approved licensed producers, through its subsidiaries Voyage Cannabis Corp and CannaCure Corp, both of which are regulated under the Cannabis Act Regulations.
The company recently acquired Canadian recreational and medical cannabis company Premium 5 Ltd, which Heritage Cannabis expects will make it a leader in the extract and extract derivatives market, as Premium 5 is a premium provider of Cannabis 2.0 hydrocarbon and solventless concentrates in Canada.
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