(Globe Newswire) Toronto — Avicanna Inc., a commercial stage, international biopharmaceutical company focused on the development advancement, and commercialization of cannabinoid-based products, has closed a non-brokered private placement offering of 1,790,750 units of the company at a price of $0.35 per unit for aggregate gross proceeds of approximately $626,762.50.
Each unit is comprised of one common share in the capital of the company and one-half of one common share purchase warrant of the company; and, each warrant shall entitle the holder thereof to acquire one common share in the capital of the company at an exercise price of $0.40 per share, subject to adjustment in certain events, until November 10, 2025.
The company has paid an aggregate total of approximately $13,649.83 in cash finders’ fees and issued an aggregate total of 39,000 finder’s warrants in connection with the offering to certain finders in connection with subscriptions for units made by purchasers introduced to the company by such finders. Each finder warrant entitles the holder thereof to acquire one common share in the capital of the company at an exercise price of $0.40 per share, subject to adjustment in certain events, until November 10, 2025.
The company intends to use the proceeds from the offering for general working capital purposes, general and administrative expenses, expenditures related to production and manufacturing, and research and clinical development.
The unit shares and warrants, and any securities issuable upon conversion or exercise thereof, are subject to a four-month hold period under applicable securities laws in Canada. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.