48North Cannabis Corp. agreed to sell 18,382,400 units on a bought deal basis to a syndicate of underwriters led by Eight Capital to raise about C$25 million in gross proceeds.

The underwriters will purchase the units in the offering at C$1.36 apiece, with each unit consisting of one common share and one-half of a five-year common share purchase warrant. Each whole warrant can be exercised for C$1.72 to buy one common share, after the closing.

The Toronto-based cannabis company has also agreed to grant underwriters an option to buy up to an additional 15% of the units sold in the offering at the same price. Full exercise of the underwriters' option will raise the gross proceeds to about C$28.8 million.

Proceeds from the offering will be used to fund inventory, working capital and general corporate purposes.

48North expects to close the offering on or about April 2, subject to closing conditions including all necessary approvals.

Eight Capital is the sole book runner for the offering.