Cannabis Wheaton poised to expand with CA$100 million stock-purchase deal

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Cannabis Wheaton Income is on the hunt for new marijuana investment opportunities as the company prepares to close on a stock-purchase deal valued at 100 million Canadian dollars ($78 million).

Under the bought-deal transaction, a syndicate of underwriters will purchase 71.5 million Cannabis Wheaton shares for CA$1.04 per share, according to a company news release.

Bank of Montreal subsidiary BMO Capital Markets is leading the stock-purchase deal, which is expected to raise CA$100 million in gross proceeds for Vancouver, British Columbia-based Cannabis Wheaton.

Underwriters have the option to buy an additional 15% of the shares under the same terms for up to 30 days after the closing of the offering.

If the option is exercised entirely, gross proceeds to Cannabis Wheaton are expected to reach CA$115 million.

Cannabis Wheaton couldn’t immediately be reached for comment.

In its release, the company said it expects to invest the capital into “domestic and international operations and capacity expansion,” as well as “potential new investment opportunities and for general working capital purposes.”

Earlier this month, the company entered an exclusive licensing deal with Denver-based Dixie Brands to use Dixie’s intellectual property – including proprietary formulations, trademarks and product branding tied to more than 100 cannabinoid-infused products in Canada and Mexico.

The 10-year deal includes an option to renew for an additional five years.