Cannapany on June 17, 2020 No Comments
The hemp and CBD company is looking to sell 10 million shares
The market leader in hemp products and cannabidiol (CBD) extracts, Charlotte’s Web Hemp (CNQ: CWEB, is seeking more funding for the company’s operations by selling its common shares in an underwritten public offering. The company announced that it has entered into an agreement with Canaccord Genuity Corp, which, along with other syndicate underwriters like Cormark Securities Inc., Eight Capital and PI Financial Corp., will sell 10,000,000 units of the Company at the price of $4.98 per unit.
The proceeds resulting from this transaction will be around $49.8 million. Each unit sold by Charlotte’s Web includes one common share of the company and one half of one common share purchase warrant. Each one of these warrants is good to acquire a common share at any moment during the next two years after the closing date of the offering. The price for each warrant was set on $6.28, subject to be adjusted in certain events.
Additionally, Charlotte’s Web has granted the underwriters an additional option for 30 days in which they can purchase up to 1,500,000 additional units keeping the same initial terms. If the underwriters decide to move forward with the purchase, the total proceedings will be $57,310,149. The company intends to use this additional funding for business development and for general working capital purposes.
The closing of the offering is expected to happen around June 18, and it is still subject to changing conditions, including the receipt of all necessary regulatory and stock exchange approvals, including the Toronto Stock Exchange and any other regulatory authorities. Each of these units will be offered in each of the Canadian provinces except Quebec, as well as a private placement in the US to “qualified institutional buyers.” The terms of the offering are still pending to be filed with securities regulators in each of the provinces.
Congratulation!