KushCo ready to offer $16 million in shares through direct offering

KushCo ready to offer $16 million in shares through direct offering

The offering has already been cleared by the SEC

Another cannabis business is seeking to gather funds with the help of the public stock market. KushCo Holdings, Inc. announced last Thursday an agreement it entered with a group of investors for a direct register offering for the purchase and sale of 10 million units. Each unit will come with one share of common stock, valued at $0.001 per share, as well as a warrant to purchase half a share of common stock, offered at $1.60 per unit. That means that the warrants will have an exercise price of $2 per share, and, with the price, the company is looking to collect approximately $16 million in gross proceeds.

In this agreement, the warrants have a five-year expiration date, and they become exercisable immediately after issuance. The net figure most likely will be lower than $16 million since the placement agent fees and some other offering expenses need to be deducted. According to KushCo, these funds will be used for working capital and other corporate purposes, and the direct offering is expected to take place today, depending on the satisfaction of the closing conditions of the deal. This agreement followed up a shelf registration made by KushCo and presented to the U.S. Securities and Exchange Commission (SEC) in which a prospect of this offering was filed to the agency.

KushCo is an international company and premier producer of auxiliary devices for cannabis and cannabidiol (CBD) industries, as well as other consultatory services. Ever since it opened in 2010, it has sold over one billion units to operators in the industry, such as growers, processors and producers across North America, South America and Europe. KushCo has subsidiary brands aim to provide high-quality products, great customer service, and compliance knowledge to boost its local presence.

leave your comment


Your email address will not be published. Required fields are marked *