- Cannabis company Nextleaf Solutions (CSE:OILS) is set to raise C$2 million in a non-brokered private placement
- The company plans to raise the funds through the issuance of units at a price of $0.30 each
- Each unit will consist of one common share and one common share purchase warrant
- The company will use the proceeds to fund operating expenses related to its recently announced extraction contracts
- Nextleaf Solutions (OILS) is currently down 6.15 per cent to $0.30 per share, with a market cap of $33.26 million
Cannabis company Nextleaf Solutions (CSE:OILS) is set to raise C$2 million in a non-brokered private placement.
The company is one of Canada’s leading cannabis extractors, using its technology to extract both CBD and THC for a range of products. Its industrial-scale plant, located in Greater Vancouver, British Columbia, has the capacity to process more than 600 kilograms of dried cannabis per day.
Nextleaf plans to raise the funds via the issuance of units at a price of $0.30 each. These units will consist of one common share and one common share purchase warrant. The warrants will be exercisable at a price of $0.50 for a period of 24 months after the date of issuance.
The company says that it will use the proceeds from the offering to fund operating expenses related to its recently announced extraction contracts, as well as for general working capital.
Charles Ackerman, CFO of Nextleaf Solutions, said that now is an ideal time to bolster the company’s extraction capabilities.
“Following our recently announced commercial contracts and the growing market opportunities with additional cannabis product manufacturing coming on line, we feel this is the right time to provide our company with additional growth working capital to pursue these accretive opportunities.
“As we move towards the outdoor cannabis harvest this fall, our goal is to have our cannabis oil refinery at 100 per cent utilization. This capital will help us move toward that goal, and most importantly – profitability,” he added.
Each unit issued under the financing will be subject to a four-month holding period, subject to the applicable securities laws and regulatory approval.
Nextleaf Solutions (OILS) is currently down 6.15 per cent to $0.30 per share at 2:46pm EDT.