Medical marijuana producer ABcann ready to wheel and deal after CA$30M raise

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Licensed medical marijuana producer ABcann Global Corp. has reached a deal to raise 30 million Canadian dollars ($22 million), strengthening its cash position to over CA$70 million.

The proceeds of the financing are being earmarked for strategic acquisitions in the cannabis industry, the Napanee, Ontario-based company said in a news release.

ABcann – traded on the TSX Venture under the symbol ABCN – said the convertible debentures will mature in three years and can be converted into shares priced at CA$1.50 per share.

The debentures will bear an annual interest rate of 7%.

ABcann is expanding its cultivation capacity in Napanee and pursuing partnership and product development opportunities in Canada and in Germany, Australia and Israel.

Canada experienced a rash of mergers and acquisitions earlier this month, with Aurora’s CA$550 million hostile takeover bid for rival CanniMed.

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