Two Canadian cannabis producers each raise CA$70 million

Canada’s licensed marijuana producers continue to raise capital at a record clip to fund overseas expansion plans and boost domestic production capacity ahead of legalization this summer.

It took only 10 days for the country’s cannabis industry to reach nearly 1 billion Canadian dollars ($810 million) in funding this year, much faster than the seven months it took the industry to reach the milestone in 2017.

In two deals announced Monday:

  • Maricann Group, which trades on the Canadian Stock Exchange as MARI, is seeking to raise CA$70 million.
  • ABcann Global, traded on the TSX Venture Exchange as ABCN, is looking to secure CA$70 million.

Under Maricann’s bought-deal transaction, the company said a syndicate of underwriters has agreed to purchase 17.5 million shares for CA$4 each.

The underwriters also have an over-allotment option that could bring the deal to CA$80.5 million.

Maricann, based in Burlington, Ontario, said in a news release it plans to use the net proceeds for capital expenditures and acquisitions.

Meanwhile, ABcann said in a news release that a syndicate of underwriters agreed to a stock-purchase deal for 11.5 million shares at a price of CA$3.50 each.

The syndicate also will purchase 30,000 convertible debentures for CA$1,000 each.

ABcann, based in Napanee, Ontario, also granted the underwriters an option for an additional 1.725 million shares and 4,500 convertible debentures for another CA$10.5 million.

The company said it plans to use the net proceeds to fund construction at its existing Vanluven facility and the planned Kimmett, Ontario, cultivation facility.

To sign up for our weekly Canada marijuana business newsletter, click here.

Leave a Reply

Your email address will not be published. Required fields are marked *