(LEAMINGTON, ON) – Leamington cannabis grower, Aphria Inc, has closed its short form prospectus offering, on a bought deal basis, including the exercise in full of the underwriters over-allotment option. In total, 12,689,675 common shares were sold at a price of $7.25 per share, for aggregate gross proceeds of $92,000,144.
The offering was underwritten by a syndicate of underwriters led by Clarus Securities Inc and included Cormark Securities Inc, Canaccord Genuity Corp, and PI Financial Corp.
Net proceeds are expected to be used in connection with the company’s construction or acquisition of domestic production facilities, if required, along with construction or acquisition of domestic retail facilities for distribution of cannabis under the Cannabis Act, in the provinces which allow it.
Aphria will also use the money provided by investors for what it called, “… strategic investments to enhance the Company’s product offerings or cultivation capabilities and non-United States international strategic investments, including direct investment or construction or acquisition of production facilities in new markets, located in non-United States federal legal markets, all related to cannabis production facilities.”
Until the funds are spent by the company, the net proceeds will be held as cash balances in the company’s bank account or invested at the discretion of the company’s board of directors.
The shares were offered for sale in each Canadian province, except Quebec, by short form prospectus, and in jurisdictions outside of Canada and the United States which were agreed to by the company and the investors. Shares were sold on a private placement basis, exempt from any prospectus, registration, or other similar requirements.
Aphria produces, supplies, and sells medical cannabis from production at its Leamington facilities. It says the production is, “… truly powered by sunlight, allowing for the most natural growing conditions available.”
The company also says it is, “… committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders.”