- Planet 13 (CSE:PLTH) has successfully completed its previously announced bought deal offering for gross proceeds of C$11.5 million
- Under the offering, the company issued a total of 5.36 million units at a price of $2.15 each, comprised of one common share and half of one common share purchase warrant
- Each whole warrant is exercisable at a price of $2.85 for a period of 24 months from the date of issuance
- The proceeds will be used to fund the expansion of cultivation capabilities in Nevada, USA, as well as retail growth outside of the state
- Planet 13 (PLTH) is currently down 4.21 per cent and is trading at $2.05 per share at 11:27am EDT
Planet 13 (CSE:PLTH) has successfully completed its previously announced bought deal offering for gross proceeds of C$11.5 million.
Under the terms of the offering, the Las Vegas-based cannabis company issued a total of 5.36 million units at a price of $2.15 each. This included 699,000 units issued pursuant to the exercising of the underwriter’s over-allotment option.
Each unit is comprised of one common share and half of one common share purchase warrant. Every whole warrant will entitle the holder to acquire an additional common share at a price of $2.85, exercisable over a period of 24 months from the date of issuance.
The offering was undertaken by a syndicate of underwriters, which included Canaccord Genuity, led by Beacon Securities. As compensation for their services, these underwriters received a cash commission equal to six per cent of the total amount raised.
A number of compensation options were also issued to the underwriters in an amount equal to six per cent of the total number of units sold. These options entitle the holders to acquire one common share at a price of $2.15 for a period of 24 months from the date of issuance.
The proceeds raised under the offering will be used to fund the expansion of Planet 13’s cannabis cultivation capabilities in Nevada, USA, as well as a campaign of retail expansion outside of the state.
Larry Scheffler, Co-CEO and Co-founder of Planet 13, said the company is now in a very strong position to execute on its growth plans.
“The hard work by the Planet 13 team in response to COVID-19 combined with years of prudent financial decisions and company-wide execution have left us with a clean balance sheet to take advantage of opportunities to expand our operations in Nevada and the wider United States during this time of uncertainty.
“With this financing, we have the capital to execute accretive transactions to drive value for our supportive shareholders,” he added.
Planet 13 (PLTH) is currently down 4.21 per cent and is trading at $2.05 per share at 11:27am EDT.
