Canabo Medical closes $8.4M financing with Aphria
December 22, 2016
Further to Canabo Medical Inc.'s press release dated Dec. 7, 2016, the company has closed its brokered private placement with Aphria Inc. of six million common shares at a price of $1.40 per share to raise gross proceeds of $8.4-million. After giving effect to the offering, Aphria will own approximately 16.6 per cent of the total issued and outstanding common shares of the company (on an undiluted basis).
The company entered into an agreement with Haywood Securities Inc. (as lead agent), PowerOne Capital Markets Ltd., and Clarus Securities Inc. and paid a cash commission to the agents equal to 5 per cent of the gross proceeds raised. The agents have also been granted an overallotment option to sell up to an additional 900,000 common shares at $1.40 per share. This option may be exercised at any time, in whole or in part, until Jan. 21, 2017. The Delavaco Group also acted as a strategic adviser.
The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All of the securities issued pursuant to this offering will have a hold period expiring April 23, 2017.
Dr. Neil Smith, executive chairman of Canabo, stated: "Aphria is a producer that aligns well with Canabo. We are both committed to advancing research to support medical cannabis treatments, and their products are achieving excellent results with many of our patients."
About the company
Canabo wholly owns and operates Cannabinoid Medical Clinics, Canada's largest referral-only clinics for medical cannabis. After opening in 2014, Canabo now has 10 clinic locations, including Toronto, Barrie, Ottawa, Hamilton, Halifax, St. John's and Edmonton, with a number of additional clinics planned for opening in 2016 and 2017.
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