Canadian retailer Nova Cannabis to issue up to CA$20 million in shares

Canadian marijuana retail chain Nova Cannabis announced an at-the-market share offering to issue as much as 20 million Canadian dollars ($15.5 million) worth of shares over time.

The shares would be sold at prevailing market prices at the time of issuance, Nova said in a news release.

Nova intends to use proceeds from any share offerings “to finance future growth opportunities including acquisitions and investments, to finance our capital expenditures, to reduce our outstanding indebtedness, for working capital purposes or for general corporate purposes,” according to a prospectus supplement filed Friday.

Nova said it currently owns or operates 81 cannabis stores in Alberta, Ontario and Saskatchewan.

Most of those stores are under the retailer’s Value Buds discount brand, with one Sweet Tree Cannabis Co. location in Saskatchewan.

Nova, an Edmonton, Alberta-based retailer, is majority-owned by cannabis producer Sundial Growers as a result of Sundial’s acquisition of Alcanna.

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Nova reported a net loss of CA$3.5 million for the quarter ended March 31, including CA$1.6 million in costs related to the closing of Sundial’s Alcanna acquisition.

Shares of Nova trade as NOVC on the Toronto Stock Exchange.