48North Cannabis (TSXV:NRTH) has announced the closing of its C$10 million private placement.
As quoted in the press release:
Following the completion of the $3,000,000 strategic investment from Canopy Growth Corporation (“Canopy Growth”) (TSX: WEED,NYSE: CGC), 48North today closed on the additional $7,045,000 from a leading US-based private investment fund, the second and final tranche of its $10,000,000 private placement.
The private placement provides capital and liquidity to support the continued expansion of 48North, including the development of its 100-acre farm and large-scale extraction capabilities to significantly increase 2019 production and facilitate the rapid development of innovative, next-generation cannabis products.
“Closing the $10 million private placement marks a significant milestone for 48North, the capital firmly secures the Company’s ability to deliver on its business plan.” said Alison Gordon, co-CEO of 48North. “The funds enable 48North to develop the necessary pre and post production facilities to develop and produce innovative, next-generation cannabis products.”
The leading US-based private investment fund elected to subscribe for Common Units (“Common Unit”) of the Company, in lieu of the previously announced Preferred Unit offering. 48North and the leading US-based private investment fund have entered into an agreement that provides the holder a right to require the Company to repurchase its Common Shares at the Company’s 5-day VWAP if certain provisions concerning confidentiality and restrictions against unlawful U.S operations are breached by 48North.