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.
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 [email protected]
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