Delta 9 Cannabis signed a stock-purchase agreement to raise 20 million Canadian dollars ($16 million) to ramp up cultivation and bankroll its bid to become a retailer of recreational marijuana in Manitoba.
The Winnipeg, Manitoba-based medical marijuana producer said in a news release it nailed down the bought-deal agreement with a group of underwriters led by Canaccord Genuity Corp.
Once completed, the transaction will mean Delta 9 has raised CA$30 million this year. The company is traded on the Toronto Stock Exchange under the ticker symbol NINE.
The company submitted a joint application with Canopy Growth to become retail operators in Manitoba.
The bid involves 12 stores in the first year of legalization, half of which would be Delta 9 stores, a company spokesperson told Marijuana Business Daily. Another 12 would be opened in Year Two.
Manitoba has introduced legislation to have private businesses sell recreational marijuana when Canada’s adult-use market is expected to launch next year.
What you need to know:
- Underwriters agreed to purchase 7.4 million Delta 9 shares at a price of CA$2.70 per share.
- The offering is expected to close by year-end and has an option for another CA$3 million.
- Delta 9 is one of only two licensed MMJ producers in Manitoba, the other being privately owned Bonify Medical Cannabis.
- The company has a national distribution agreement with Canopy Growth.
- Delta 9 said it supplies more than half of Manitoba’s medical marijuana market.
Matt Lamers can be reached at firstname.lastname@example.org