Canadian cannabis grower Hexo Corp. priced a public offering to raise $140 million.

The offering follows a shelf prospectus supplement that Hexo filed May 25.

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Proceeds from the share offering will be used to pay part of the cash component of Hexo’s acquisition of Canadian competitor Redecan as well as “for expenditures in relation to the company’s U.S. expansion plans,” which include a Colorado production facility.

The underwriters of the offering agreed to purchase 47,457,628 units at $2.95 per unit, according to a Friday news release.

Each unit includes one common Hexo share and 0.5 share purchase warrants.

Each warrant can be exercised to acquire one common share at $3.45 within five years of the closing date of the offering, “subject to adjustment in certain events.”

The underwriters have been granted a 30-day option to purchase 7,118,644 more units on the same terms.

The offering is expected to close on or around Aug. 24, subject to conditions such as Toronto Stock Exchange approval.

Hexo’s U.S. shares currently trade on the New York Stock Exchange, but the company recently applied to list on the Nasdaq.

The company’s Canadian shares trade on the Toronto Stock Exchange.