An announcement from Aphria Inc. (OTC:APHQF) (TSXV:APH) and Tetra Bio-Pharma Inc. (OTC:GRPOF) (CSE:TBP) today marked a major private placement deal for the two Canadian cannabis companies.
The Deal's Details
The deal is a non-brokered private placement of shares and warrants in Tetra Bio-Pharma.
The private placement officially closed on December 5th.
The deal was for 5,000,000 units.
Each unit consists of one share of Tetra common stock and one non-transferable warrant.
There are currently 58,070,487 issued and outstanding shares of Tetra Bio-Pharma.
This makes the deal equivalent to 8.61% of Tetra, up to a potential 17.22% if Aphria exercises the warrants.
The price was $0.20 CAD per unit. This is equivalent to $0.15 USD.
This leads to aggregate gross deal proceeds of $1,000,000 CAD or roughly $752,802 USD.
Proceeds of the deal will be used to start clinical trials for PhytoPain Pharma Inc.
Each warrant entitles Aphria to purchase one share of Tetra Bio-Pharma at $0.26 CAD per share for 3 years from closing or sooner if share prices rise enough.
Each warrant is already in-the-money $0.06 CAD. With 5,000,000 units that is a paper gain of $300,000 CAD for Aphria Inc.
Shares of TBP closed the trading day on the CSE at $0.32 CAD.
Shares of GRPOF closed the trading day on the OTC at $0.25 USD
If Tetra Bio-Pharma's shares trade above $0.45 CAD for 30 consecutive trading days, then the warrants will expire in 30 days if not exercised.
The shares issued in this deal are subject to a 4 month holding period from closing.
Completion of the deal is subject to regulatory and exchange approvals.
The announcement was released at 8:30 AM EST today, and the markets have now had a whole trading day to react to the news. Shares of GRPOF were up 17.76 % today, while shares of APHQF were down -5.80%. As seen in the chart above, GRPOF is now up 79.47% in the last month compared to APHQF's 31.14% gain over the same period.
For more information on APHQF be sure to check out Aphria's stock profile in our TSXV Listed Marijuana Stocks Database. For more information on Tetra Bio-Pharma Inc. check back soon as we will be adding a marijuana stock profile in the coming days. For Aphria's press release regarding the private placement click here.