This morning, Namaste Technologies Inc. (CSE:N) (OTC:NXTTF) (FRA:M5BQ) announced that it has closed its previously announced “bought deal” short form prospectus offering of units, including the exercise in full of the over-allotment option.
According to the company's release, a total of 15,784,900 units of Namaste were sold at a price of $2.55 CAD per unit for gross proceeds of $40,251,495 CAD (including the exercise in full of the over-allotment option). This amounts to roughly $31,609,096.51 USD at current foreign exchange rates.
Each unit was comprised of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of Namaste at a price of $3.15 CAD for a period of 24 months following today, subject to acceleration of the expiry date in the event the volume weighted average price of the Namaste common shares on the CSE is equal to or greater than $6.00 CAD per shares for a period of 10 consecutive trading days.
It is expected that these warrants will commence trading today on the CSE under the symbol "N.WT".
Sean Dollinger, President, and CEO of Namaste commented: “We’re very pleased to have closed this bought-deal financing which leaves the Company in a strong cash position and prepared for continued growth. We are very confident with the roll-out of our strategy as it relates to NamasteMD and Cannmart as well as our plans to launch similar models throughout our global networks of consumer databases and websites. We believe that Namaste has positioned itself to become a global leader in the medical cannabis industry. We would like to thank Eight Capital, Cannacord Genuity and Beacon Securities for their support and participation in this financing as well as our management team for their efforts in seeing this financing through to an end. We’d also like to thank our shareholders for their support as we look forward to a very exciting month of March 2018”.
The net proceeds of the Offering are expected to be used by Namaste to fund inventory and supplies for the CannMart facility, to expand its customer and user base, for e-commerce upgrades and for working capital and general corporate purposes.
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