TransCanna Holdings Inc. upsized a previously announced units placement to a maximum of 8 million units from 5 million units.
The units, which will still be sold at C$2 each, will consist of one common share and 0.5 of a 3-year warrant. Each whole warrant is exercisable at C$3 each.
Gross proceeds are now expected to be C$16 million, up from the previously expected C$10 million. Vancouver, British Columbia-based TransCanna intends to use the net proceeds to partially fund the acquisition of a cannabis facility in California and to fund working capital and general corporate purposes.
The company said it plans to seek a loan to fund the full price of the facility once it has signed a definitive agreement for the deal.
The placement's closing is conditional upon completion of the facility acquisition. The placement, which may be completed in multiple tranches, is expected to close March 28, subject to regulatory approvals.
Meanwhile, Cannacord Genuity Corp. is joining Haywood Securities Inc. to co-lead a syndicate of agents, which includes Gravitas Securities Inc.