This morning, Matica Enterprises (CSE:MMJ)(OTC:MQPXF) announced that the company has closed their private placement of units comprised of one share and one warrant. Each warrant entitles the holder to purchase one common share of the Company for a period of 18 months from the closing date at a price of $0.10 per warrant. Matica rose $2,515,300 CAD in aggregate gross proceeds from the offering. All securities purchased are subject to the customary 4 month hold period.
Matica intends to use the proceeds to fund the previously announced $2,200,000 CAD build-out of RoyalMax Biotechnology Canada's Dorval cultivation facility. RoyalMax Biotechnology Canada Inc. is a late-stage ACMPR applicant.
Now Read: 7 Stages of the ACMPR Application Process
Matica has entered into an agreement with RoyalMax which will allows Matica to acquire an initial 65% interest with the right to earn an additional 5% upon the completion of certain milestones.
Market Reaction
In midday trading Tuesday, shares of Matica Enterprises on the CSE are up more than 4%. The company's OTC Markets symbol is up roughly 2% on very light trading volume. Year-to-date, shares of Matica are up roughly 500%!
Conclusion
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