Just a couple of days after Charlotte’s Web Hemp (CNQ: CWEB announced its underwritten public offering to raise funds for its operations, the company has announced that it has closed the offering. The market leader in hemp extracts and cannabidiol (CBD) sold a total of 11,500,000 units at a price of $4.96 a unit, and also the full exercise of the additional offering to underwriters for a total of $57,085,036 in proceedings. The main actor leading the offering was Canaccord Genuity Corp., along with a syndicate of other underwriters.
Each of the units sold by Charlotte’s Web was comprised of one common share of the company and one-half common share purchase warrant. Each of those warrant guarantees underwriters the ability to acquire one common share for a period of two years after the closing date of the offering; that warrant would be exercised at the price of $6.25 per share. Of course, it is also subject to certain events that might alter demand and require adjustments.
These warrants were released to the market just yesterday, and it took less than two days to complete the process. Other syndicated companies involved in the purchase of the company’s common shares were Cormark Securities Inc., Eight Capital and PI Financial Corp, among others. These units were offered in each of the Canadian provinces other than Quebec and also by way of private placement in the US to certain qualified corporate buyers.
Charlotte’s Web has been a pioneer company in the CBD industry and, even though it has experienced liquidity problems in the past few months, there is no doubt that this cannabis company has a lot of room for growth. Charlotte’s Web said that the company expects to use the proceeds coming from this offering to fund the further development of the business and also for general working capital purposes.