Within the span of a week and a half, a trio of Canadian medical cannabis producers announced they had all raised seven-figure amounts to expand their businesses.
First it was Aphria, which revealed on July 28 that it had entered into a “bought deal” that would net it CA$25 million, in exchange for 12.5 million common shares of stock at CA$2 per, according to a news release.
The next day it upped the value to CA$30 million ($22.6 million U.S.) “due to strong demand.” Aphria entered into the agreement with Clarus Securities, which made the stock purchase on behalf of a syndicate of underwriters.
Third up, Canopy Growth Corporation, the parent company of Tweed and Bedrocan, raised CA$25 million initially by selling 6.8 million shares at CA$3.65 per to Dundee Securities – the same company that purchased the OrganiGram shares. It later increased that amount to over CA$30 million ($22.6 million U.S.) for 8.2 million shares at the same price.
Both Aphria and OrganiGram said in news releases they intend to use the money “for working capital and general corporate purposes.”
These raises are almost certainly just the first of many that the industry will see in coming years, as institutional investors warm to legal cannabis in various countries.