- Nextleaf Solutions (CSE:OILS) has completed a non-brokered private placement for gross proceeds of C$3.06 million
- The company issued roughly 10.2 million units at a price of 30 cents each
- Each unit is comprised of one common share in the company and one common share purchase warrant
- The proceeds will be used to fund the company’s extraction contracts and intellectual property protection
- Nextleaf Solution (OILS) is down 1.47 per cent and is trading at 34 cents per share, with a market cap of $36.54 million
Nextleaf Solutions (CSE:OILS) has completed a non-brokered private placement for gross proceeds of approximately C$3.06 million.
The company, which develops technology for extracting and distilling THC and CBD oils, issued approximately 10.2 million units at a price of 30 cents each.
Under the first tranche, roughly 6.67 million units were issued for a total of $2 million. A second tranche issued 3.5 million units for a total of $1.06 million.
Each unit consist of one common share in the company, as well as one common share purchase warrant. These warrants are exercisable at a price of 50 cents for a period of 24 months from the date of issuance.
However, should Nextleaf’s shares trade at or above a price of 70 cents for ten consecutive trading days, the expiry date of the warrants may be brought forward.
The proceeds raised under the offering are expected to be used to fund the company’s pipeline of extraction contracts, as well as bolstering the protection of its intellectual property. A portion will also go towards general working capital and corporate purposes.
Charles Ackerman, CFO of Nextleaf Solutions, said it was an opportune time to bolster the company’s liquidity.
“Following our recently announced commercial contracts and the market opportunities with additional cannabis 2.0 manufacturers coming online, we felt this was the right time to provide our company with additional growth working capital to pursue these accretive opportunities.
“We have received strong interest for this non-brokered private placement from loyal OILS shareholders and new strategic investors. As we move towards Canada’s 2020 outdoor-grown cannabis harvest, our goal is to have our cannabis oil refinery at 100 per cent utilization,” he said.
Nextleaf Solutions (OILS) is down 1.47 per cent and is trading at 34 cents per share at 10:47am EDT.