2 Canadian marijuana producers look to raise CA$51 million

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Two producers of medical marijuana, CannTrust Holdings and The Green Organic Dutchman Holdings, are taking separate steps to raise capital to fund the build-out of their production facilities to meet demand for MMJ and recreational cannabis.

CannTrust entered into a stock-purchase agreement to raise at least 15 million Canadian dollars ($11.6 million) that it plans to put toward the second phase build-out of its recently licensed Niagara greenhouse facility and for general purposes.

Under the so-called bought deal transaction, a group of underwriters has agreed to purchase 3 million common shares of CannTrust at a price of CA$5 each.

CannTrust — a medical marijuana producer based in Vaughn, Ontario, and traded as TRST on the Canadian Securities Exchange — said in a news release that the underwriters have an option to increase the financing to as much as CA$17.5 million.

Separately, The Green Organic Dutchman increased its financing for a second time to CA$36 million through an offering of its shares.

That’s up from its previously announced brokered unit offering and non-brokered offering of CA$30 million. Previously, Green Organic Dutchman had sought to raise CA$20 million through a private placement of its shares.

The Hamilton, Ontario-based company plans to use the money to advance its cultivation facilities in Ontario and Quebec.