Delta 9 arranges $4-million bought deal offering 2020-11-30 16:14 ET - News Release
Mr. Ian Chadsey reports
DELTA 9 ANNOUNCES $4 MILLION BOUGHT SHORT FORM PROSPECTUS OFFERING OF EQUITY UNITS
Delta 9 Cannabis Inc. has entered into an agreement with Leede Jones Gable Inc. as the lead underwriter and sole bookrunner pursuant to which the underwriter has agreed to purchase, on a bought deal basis, 7,272,728 units for gross proceeds to the company of $4,000,000.40 at a price of 55 cents per equity unit.
Each equity unit will consist of common share of the company and one-half of a common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at an exercise price of 70 cents at any time up to 36 months following closing (as defined below).
The units will be offered by way of a short-form prospectus to be filed in those provinces of Canada other than Quebec as the underwriter may designate pursuant to National Instrument 44-101 (Short Form Prospectus Distributions) and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.
The net proceeds from the offering will be used for working capital and general corporate purposes.
The closing of the offering is expected to occur on or about the week of Dec. 21, 2020, and is subject to the company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.