Vertically integrated California cannabis company Lowell Farms announced the completion of a nonbrokered equity private placement worth $18 million.
“Proceeds from the offering are contemplated to be used for working capital purposes, automation investments, and expansion into new markets,” Salinas-based Lowell Farms said in a Tuesday news release.
The offering includes 18 million units of Lowell Farms for $1 each.
Each unit comprises one subordinate voting share and one-half of a share purchase warrant.
Each warrant can be exercised to acquire one share for $1.40 until Aug. 30, 2024, “subject to adjustment in certain circumstances.”
Company insiders purchased 2.9 million units in the offering.
“This financing allows the Lowell Smokes brand, one of the strongest cannabis brands in the country, to expand geographically and increase scale in its home state of California,” Lowell Farms Chair George Allen said in a statement.
Lowell Farms, formerly known as Lowell Herb Co., was acquired by Indus Holdings in February in a deal worth $39 million.