- CubicFarm Systems (CUB) has agreed to increase the size of its previously announced $20 million bought deal offering
- The underwriters have agreed to purchase 16,296,297 common shares for $1.35 per share for aggregate gross proceeds of approximately C$22 million
- The underwriters have been granted an over-allotment option to purchase up to 15 per cent more shares
- The offering is expected to close on or about June 3, 2021
- CubicFarms is an agricultural technology company
- CubicFarm Systems Corp. (CUB) is down 1.41 per cent, trading at $1.40 per share at 11 am ET
CubicFarm Systems (CUB) has agreed to increase the size of its previously announced $20 million bought deal offering.
Pursuant to the upsized transaction terms, the underwriters have agreed to purchase 16,296,297 common shares at a price of C$1.35 per share for aggregate gross proceeds of approximately C$22 million.
CubicFarm has agreed to grant the underwriters an over-allotment option to purchase up to 15 per cent more shares at the issue price, exercisable at any time up until 30 days from the closing of the offering.
Net proceeds will be used to further expand the company’s research and development efforts, provide working capital and for other general corporate purposes.
“We’re thrilled by the confidence shown with this investment by global institutional investors,” said Dave Dinesen, Chief Executive Officer, CubicFarms.
“With our international expansion and strong inbound demand for our CubicFarm System and HydroGreen Grow System technologies, these funds enable us to continue focusing on our market-leading technology roadmap to accelerate global growth.”
Joakim By, Chief Portfolio Manager US Equities, for Handlesbanken commented,
“As one of Europe’s largest environmental, social, and governance focused investors, Handelsbanken has a history of successful sustainability-focused investment that address the global challenges impacting the future of food supply and security. We are excited to invest in CubicFarms and demonstrate our strong support to their vision. They are delivering unique indoor growing technologies and go-to-market strategies that help solve these pressing issues in a sustainable manner.”
The offering is expected to close on or about June 3, 2021 and is subject to certain conditions including the approval of the TSX Venture Exchange.
CubicFarms is an agricultural technology company developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp.
CubicFarm Systems Corp. (CUB) is down 1.41 per cent, trading at $1.40 per share at 11 am ET.