CannTrust Holdings Inc. upsized its previous bought-deal offering to 9.7 million units at C$9 apiece to raise gross proceeds of about C$87.3 million.
In addition, CannTrust plans to grant the underwriters an overallotment option to buy up to an additional 1,455,000 units in the offering.
Gross proceeds of about C$13.1 million will be raised upon the full exercise of the overallotment option, bringing the total gross proceeds of the offering to about C$100.3 million.
Each unit will comprise 1 common share and 0.5 common share purchase warrant. Each warrant will be exercisable to buy 1 common share for two years after the closing of the offering at an exercise price of C$12 per common share.
CannTrust plans to use the net proceeds for working capital and general corporate purposes.
The offering is expected to close June 5.
Canaccord Genuity Corp. and GMP Securities LP are leading the syndicate of underwriters for the offering.
Canada-based CannTrust Holdings produces medical cannabis products under the Health Canada Access to Cannabis for Medical Purposes Regulation.