Delta 9 Cannabis Inc. to announce the closing of its previously announced bought deal financing of 10,454,546 units of the Company at a price of $0.55 per Equity Unit for aggregate gross proceeds of $5,750,000.30. The Offering was conducted and led by Leede Jones Gable Inc. The Offering included 1,363,636 Equity Units sold pursuant to the full exercise of the Underwriter’s over-allotment option.
The net proceeds received by the Company from the Offering will be used for working capital and general corporate purposes.
Each Equity Unit consists of one common share of the Company (a “Common Share”) and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.70 at any time up to 36 months following the date hereof.
Pursuant to the terms of the underwriting agreement between the Company and the Underwriter, the Company paid the Underwriter a cash commission equal to 7.0% of the gross proceeds of the Offering, and issued 731,818 non-transferable warrants (the “Broker Warrants”) of the Company to the Underwriter, with each Broker Warrant exercisable, for a period of 36 months from the date hereof, into one Common Share at an exercise price equal to the Offering Price.
The Offering is subject to the final approval of the Toronto Stock Exchange (the “TSX”). The TSX has conditionally approved the Offering and the listing of the Common Shares forming part of the Equity Units and the Common Shares issuable upon exercise of the Warrants and Broker Warrants.
The Equity Units were offered by way of a short form prospectus filed in all of the provinces of Canada except Québec pursuant to National Instrument 44-101 Short Form Prospectus Distributions.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Delta 9 Cannabis Inc. is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis grow pods to other businesses. For more information, please visit https://invest.delta9.ca/.