Hydropothecary Corp. reached a deal to raise at least 60 million Canadian dollars ($50 million) that it plans to put toward working capital and general corporate purposes.
Under the so-called bought deal transaction, a group of underwriters has agreed to purchase 60,000 units of Hydropothecary convertible debentures. The convertible debentures can be turned into stock.
Hydropothecary — a medical marijuana producer based in Gatineau, Quebec, and traded as APH on the TSX Venture Exchange — said in a news release that the underwriters have an option to increase the financing to as much as CA$69 million.
The CA$60 million funding, announced Monday, represents a CA$10 million increase from an initial bought deal transaction that Hydropothecary had announced the same day.
Here’s what you need to know about Hydropothecary:
- Hydropothecary is the only licensed producer in Quebec with a license to grow and sell medical cannabis.
- The Quebec government will establish a nonprofit public company to manage the distribution and sale of recreational cannabis within the province, according to a report in a French-language newspaper.
- The public company is likely going to sign supply agreements with producers for recreational cannabis, following in the footsteps of New Brunswick, and Hydropothecary is well positioned to get one of them.
- Hydropothecary broke ground on its fully funded, 250,000-square-foot greenhouse in mid-October.