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Canadian medical marijuana producer Newstrike Resources plans to raise C$40M

Canada's Newstrike Resources Ltd. said it was looking to raise C$40 million via the sale of company securities.

The medical marijuana producer said it had entered an agreement with a syndicate of investment dealers represented by Cormark Securities Inc. and Infor Financial Inc. to sell 53,350,000 units of the company at 75 Canadian cents apiece.

Each unit comprises a common share and half of a purchase warrant. Every whole warrant entitles the holder to buy an additional stock of the company at C$1 each.

The offering's underwriters can buy up to an additional 15% of the units from the company. The offering is expected to close by June 14.

"With the proceeds of this offering, Newstrike will have access to over C$115 million to deploy into our facility expansion, a variety of transformational branding and product development initiatives and potential new investment and acquisition opportunities," Newstrike CEO Jay Wilgar said in a statement.