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.