MedReleaf reached a stock-purchase agreement to raise 60 million Canadian dollars ($47 million) to finance the acquisition or construction of marijuana production and manufacturing facilities in Canada and overseas.
MedReleaf – based in Markham, Ontario and traded on the Toronto Stock Exchange under the symbol LEAF – said in a news release the underwriters have an option to increase the proceeds from the bought deal transaction by an additional CA$9 million.
Under the deal, the underwriters agreed to purchase slightly more than 6 million MedReleaf shares at a price of CA$16.55 per share from both MedReleaf and a group of five selling shareholders.
MedReleaf and the shareholders will divvy up the proceeds at CA$60 million and CA$40.5 million, respectively.
Separately, MedReleaf’s joint venture partner in Australia, Indica Industries Pty, was granted a license from the Australian Government Office of Drug Control for the cultivation and production of medical cannabis.
The license will begin in November 2018 so Indica can complete infrastructure development of its cultivation and production facilities, the company said in a news release.
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