Marijuana firm Planet 13 raises $53.9M in bought deal public offering

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Nevada marijuana company Planet 13 Holdings raised 69 million Canadian dollars ($53.9 million) on Tuesday in a bought deal public offering.

According to a company news release, the money will be used for “potential acquisitions for purposes of retail, cultivation and production expansion outside of Nevada, as well as general corporate and other working capital purposes.”

The offering by a syndicate of underwriters, led by Beacon Securities and Canaccord Genuity, sold a total of 9.9 million units of Planet 13 at a cost of CA$7 per unit, including units sold under an over-allotment option.

Each unit includes one common share and a warrant to purchase 0.5 common shares, which can be exercised at CA$9 per share for the next two years.

The underwriters received a cash commission of 6% of the gross proceeds, plus a compensation option equaling 6% of the units sold.

The compensation option entitles the underwriters to purchase common shares at CA$7 per share for the next two years.

The bought deal public offering was announced Jan. 12.

Planet 13 Holdings’ shares trade on the Canadian Securities Exchange as PLTH, and the warrants will trade on the same exchange.

Planet 13 also trades on the U.S. over-the-counter markets as PLNHF.