SpeakEasy Cannabis Club Ltd. said it closed a nonbrokered private placement for deemed aggregate gross proceeds of C$8.3 million.

The company offered 16.5 million units for 50 Canadian cents apiece, with each unit consisting of one common share and one-half of a common share purchase warrant.

Each warrant can be exercised to buy one common share for C$1 for a duration of 24 months after closing.

SpeakEasy Cannabis also issued 1,429,242 units, representing C$714,621 of gross proceeds, to certain creditors to settle outstanding debt obligations.

The Canadian cannabis company expects to use the net proceeds from the private placement for working capital and general corporate purposes.