International Cannabrands Inc. is looking to raise up to $5 million gross proceeds through the sale of its 25 million units at 20 cents apiece.
Each unit consists of a common share and a half of a purchase warrant. Each whole warrant will allow the holder to buy additional common shares for 30 cents per share within a 36-month period.
The Denver-based cannabis company granted the agents in the offering — Gravitas Securities Inc. and Canaccord Genuity Corp. — an option to buy up an additional 25 million units.
If the option is fully exercised, the company will raise up to $5 million in additional gross proceeds.
Closing of the transaction is subject to the due diligence of the agents, execution of an agreement between the company and the agents, as well as regulatory approval.
International Cannabrands expects to use the offering's net proceeds to fund its acquisition of a 51% interest in La Vida Verde Inc., a California based cannabis company. A portion of the proceeds is also allocated use in other accretive acquisitions and for general corporate purposes.