Cresco Labs Inc. closed a public offering of 7,350,000 units priced at C$10 each.
The Chicago-based medical cannabis company also granted underwriters a 30-day option to buy up to an additional 1,102,500 units at the same price to cover over-allotments.
Each unit includes one subordinate voting share of Cresco Labs and one half of a subordinate voting share purchase warrant. Each warrant entitles the holder to buy one subordinate voting share at C$12.50 each for three years following the closing of the offer.
The Canadian Securities Exchange approved the listing of the warrants under the offering. The warrants are expected to trade on the exchange under the CL.WT ticker symbol.
Cresco Labs expects gross proceeds of C$73.5 million from the offer. If the underwriters exercise their option in full, aggregate proceeds of the offering will be C$84,525,000.
The company plans to use proceeds for business development, working capital and other general corporate purposes.
The offer was conducted by a syndicate of underwriters led by Canaccord Genuity Corp. and included Beacon Securities Ltd., Cormark Securities Inc., Eight Capital and GMP Securities LP.
