Cannabis firm Harvest Health closes $100 million tranche of private placement

Multistate marijuana firm Harvest Health & Recreation (CSE: HARV) closed the initial tranche of its previously announced private placement for gross proceeds of $100 million.

The Arizona-based company plans to use the net proceeds to cover working capital and for other general corporate costs, according to a news release.

Under terms of the financing, Harvest offered convertible debentures priced at $1,000 per unit, which mature in May 2022 and carry a 7% annual interest rate.

The debentures can be converted into subordinate voting shares at a price of $11.42 per share.

The company also announced it had forged an agreement with an unidentified institutional investor to purchase up to  four additional tranches of 100,000 convertible debentures for additional gross proceeds of up to $400 million.

To facilitate the transaction, Harvest also entered into an agency agreement with Eight Capital, a Toronto-based investment dealer.

Lisa Bernard-Kuhn can be reached at lisabk@mjbizdaily.com

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