KushCo Holdings Inc. priced a registered direct offering of common stock and warrants to raise about $34 million in gross proceeds.
The company is offering 6,476,190 common shares along with warrants for the purchase of up to 3,238,095 shares at a combined price of $5.25 per share.
KushCo said the warrants, which expire after five years, can be exercised immediately at a price of $5.75 per share. The offering is expected to close Jan. 18.
The Garden Grove, Calif.-based company plans to use the proceeds for general corporate purposes, which include working capital, product development, acquisitions and capital expenditures, as well as other business opportunities.
Alliance Global Partners is the lead placement agent, while Compass Point Research & Trading LLC is the co-placement agent for the offering. Northland Securities Inc. is acting as the financial adviser to KushCo Holdings.