MMJ PhytoTech Ltd. (ASX: MMJ) (OTC:MMJJF) just announced that its partly-owned subsidiary, Harvest One Cannabis Inc. (TSXV:HVST) (OTC:HRVOF) is raising $35,000,000 (excluding over-allotments) via a fully underwritten short form prospectus offer. While the company initially intended on raising $25 million, the financing round was upsized due to strong investor demand.
The deal was signed with lead underwriter and sole bookrunner Mackie Research Capital Corporation on behalf of a syndicate of underwriters, including Haywood Securities Inc., and Eight Capital Corporation.
In the bought short form prospectus offering, Harvest One will be raising $35,000,000 of units, at a price of $1.82 per unit. Under the offering, each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share (a.k.a warrant share) at an exercise price of $2.30 per warrant share at any time up to 24 months following the closing of the offering.
The company has also granted the underwriters an over-allotment option, exercisable in whole or in part, at any time up to 30 days after the closing of the offering to purchase up to an additional 15% of the number of units issued pursuant to the same deal structure. If the over-allotment option were to be exercised in its entirety, the aggregate gross proceeds of this offering will be $40,250,000.
Australia-based MMJ PhytoTech has a roughly 48% stake in Harvest One. Additionally, MMJ PhytoTech has a 100% interest in its Israeli research and development subsidiary, PhytoTech Therapeutics Ltd. Recently, ASX-listed cannabis stocks have gone wild, following Health Minister Greg Hunt's announcement of his intentions to expand the existing Australian cannabis industry through worldwide exports.
Harvest One Cannabis Inc. has operations across the entire cannabis value-chain through three business units, with Harvest One serving as the umbrella company over horticultural arm United Greeneries and medical arm Satipharm AG.
To stay up to date with important developments in the cannabis industry, be sure to subscribe to one or more of our free email newsletters. Also, connect with The Daily Marijuana Observer on Facebook, Twitter, StockTwits and Instagram!