CannaRoyalty Announces Closing of $30 Million Private Placement

Written By: Jen Neville
July 12, 2018

cannabis supply chain

CannaRoyalty Corp., a North American cannabis products and brands company recently announced that it has closed its previously-announced, fully marketed private placement of unsecured convertible debentures for raising aggregate gross proceeds of $32,980,000. The Offering was comprised of up 30,000 unsecured convertible debentures of the Company at a price of $1,000 per Convertible Debenture.

The Agents (as defined below) also partially exercised their option to arrange for purchases of additional Convertible Debentures, raising an additional $2.98 million in gross proceeds. The proceeds from the Financing will be primarily used by the Company to expand its footprint across California, as well as general corporate and working capital purposes.

Canaccord Genuity Corp. acted as lead agent for a syndicate of investment dealers, including Altacorp Capital Inc., Beacon Securities Ltd., Cormark Securities Inc., Sprott Private Wealth LP, Infor Financial Inc., and Mackie Research Capital Corporation.

“We believe that California is the most attractive cannabis brands market in the world. The Offering will enable CannaRoyalty to further expand its footprint by building-out additional cross state distribution infrastructure and manufacturing capabilities, to better position us to meet the strong consumer demand we are seeing in the market,” noted Marc Lustig, CEO of CannaRoyalty.

The Convertible Debentures and the common shares issuable upon conversion thereof will be subject to resale restrictions under applicable Canadian securities laws for a period of four months following the closing date. The Company intends to apply to list the Convertible Debentures on the Canadian Securities Exchange.

Listing will be subject to satisfying all of the Canadian Securities Exchange’s supplemental listing requirements and expiry of the four-month statutory hold period. A copy of the indenture governing the Convertible Debentures has been filed on the Company’s SEDAR profile.

Get news, insights, podcasts, videos, webinars, and events delivered to your inbox every Tuesday

Canadian securities laws Cannabis Cannabis Brands