Toronto-based Newstrike Resources Ltd. raised an additional C$12 million after underwriters of its previously announced equity offering exercised their overallotment option.
Infor Financial Inc. and Cormark Securities Inc. co-led the syndicate of underwriters, which included Eight Capital and Haywood Securities Inc.
The company had previously raised C$80 million through an upsized equity offering and had granted the underwriters an option to purchase additional 9,091,500 units at C$1.32 apiece.
Each unit consisted of a common share and a share purchase warrant. The warrants expire Feb. 16, 2020, and have an exercise price of C$1.75.
The underwriters fully exercised their overallotment option.
As part of the overallotment, the underwriters also received an aggregate of 545,490 compensation options entitling them to acquire one unit at C$1.32 apiece until Feb. 16, 2020.
Canadian medical cannabis producer Newstrike plans to use the proceeds for building its production facilities, retiring debt obligations and funding general corporate purposes.