- Cannabis producer, Aleafia Health (TSX:AH) has closed its bought deal offering, in which it raised C$14.95 million in total proceeds
- Through the offer, the company issued a total of 23 million units at 65 cents each
- Aleafia Health plans to use the proceeds for working capital and general corporate purposes
- In related news, the company changed its trading symbol on the Toronto Stock Exchange from ALEF to AH
- Aleafia Health (AH) is down 1.69 per cent and trading at 58 cents per share
Cannabis producer, Aleafia Health (TSX:AH) has closed its bought deal offering, in which it raised C$14.95 million in total proceeds.
The company plans to use the offer’s proceeds for working capital and general corporate purposes.
Aleafia Health issued a total of 23 million units at 65 cents each, during the course of the offering.
Each unit contained one common share in Aleafia Health, and one half of a common share purchase warrant.
Each whole warrant entitles the holder to purchase another common share at an exercise price of 80 cents. The holder can use the warrants to purchase additional common shares within 36 months of the offer’s closing date.
The bought deal offering was led by Eight Capital, on behalf of an underwriters’ syndicate. The group included Canaccord Genuity Corp, BMO Capital Markets, Leede Jones Gable Inc, Raymond James Ltd, Mackie Research Capital Corp, and PI Financial Corp.
Aleafia Health paid the underwriters a cash fee of six per cent of the aggregate gross proceeds, approximately $897,000.
The company also issues the underwriters 805,000 non-transferable compensation warrants. Each compensation warrant is exercisable into units at 65 cents, for the 36 months following the offering’s closing date.
In related news, Aleafia Health recently changed its trading symbol on the Toronto Stock Exchange. The company, which was previously listed under ALEF, started listing under AH as of May 27, 2020.
The warrants which Aleafia Health issued in connection with this offering will trade on the Toronto Stock Exchange under AH.WT.A. That said, the company’s bought deal offering is still subject to final acceptance from the TSX.
Aleafia Health (AH) is down 1.69 per cent and trading at 58 cents per share at 1:38pm EDT.