- AgriCann Solutions Corp. has closed its non-brokered private placement, raising over $1 million by issuing 10,342,361 units.
- Each unit consists of a common share and a share purchase warrant, with each warrant allowing the holder to purchase an additional share at $0.20 within 24 months.
- The Company can accelerate the expiry of the warrants if the common shares’ price meets or exceeds $0.30 for ten consecutive trading days after the hold period.
- Insiders of the Company took part in the offering, securing 5,492,361 Units, considered a “related party transaction.”
- Funds from this offering will boost general working capital and facilitate capacity expansion at the Newline Ventures Inc. facility, where AgriCann recently relocated its primary operations.
AgriCann Solutions Corp., a leading player in the cannabis nursery sector, has announced the closing of its anticipated non-brokered private placement, as previously stated in its July 28, 2023, news release. The offering, amended on September 7, 2023, saw the Company issuing 10,342,361 units, raising a commendable $1,034,236.
Each unit issued under this private placement comprises a common share in the Company’s capital and a common share purchase warrant. This structure gives warrant holders a unique opportunity. They can acquire an additional common share at $0.20 per share for two years after the offering’s closing date. To expedite this process, the Company retains the right to shorten the expiry date of the warrants if specific stock price benchmarks are achieved.
This strategic placement witnessed significant participation from the Company’s insiders. They acquired 5,492,361 Units, amounting to $549,236.10. Such involvement is recognized as a “related party transaction” under the Multilateral Instrument 61-101 (“MI 61-101”). However, it’s anticipated that this will be exempt from the formal valuation and minority shareholder approval requirements typical of MI 61-101.
The capital infusion from this offering will be channeled towards enhancing the Company’s general working capital and driving capacity augmentation at the Newline Ventures Inc. facility. This facility holds special significance for AgriCann since it is the new hub for its primary operations after a strategic corporate relocation. Moreover, the culmination of the definitive Share Exchange Agreement with Newline, as announced on July 28, 2023, is on the horizon.
About AgriCann Solutions Corp.
Located in Lake Country, British Columbia, AgriCann operates through its wholly-owned subsidiary, Craft Nurseries Canada Ltd. It’s a full-service cannabis nursery licensed by Health Canada. Additionally, the Company is on track to finalize the acquisition of Newline Ventures Inc., another Health Canada-licensed establishment. AgriCann is renowned for its unique support to craft cultivators. By offering unmatched marketing strategies, ensuring a demand with top-tier genetics, and robust consumer branding, it has made a name for itself in the cannabis industry. AgriCann’s commitment is evident in its efforts to provide cultivators with enhanced genetics, materials, and cultivation support, ensuring the production of premium quality finished products. The Company is also instrumental in assisting micro-batch craft cultivators, offering them efficient market access and ensuring a consistent supply of top-notch craft cannabis products to domestic and global consumers.
Image provided by AgriCann solutions