Ontario-based cannabis producer CannTrust Holdings has laid the groundwork to raise up to $700 million Canadian dollars ($525 million) by filing a base level prospectus with Canadian securities agencies and the U.S. Securities and Exchange Commission.
When made final, the filing would allow the company to offer debt securities, warrants, subscription receipts and units or common shares for a 25-month period, CannTrust said in a news release.
CannTrust said the specific terms of any future offering, including the use of proceeds, will be disclosed in a prospectus supplement.
Most large licensed producers are looking to capitalize on new medical cannabis markets overseas, as competition heats up in Canada’s new adult-use market.
The company previously said it generated CA$106 million in cash from financing activities during the nine months ended Sept. 30, 2018, compared with CA$25 million in the comparable 2017 period.
That left the company with cash and cash equivalents of CA$86.3 million as of that date.