The Hydropothecary Corporation (TSXV:THCX) has announced that it has entered into a revised agreement with Canaccord Genuity, Eight Capital and a syndicate of underwriters pursuant to which the underwriters have agreed to purchase on a bought deal basis 32.5 million units of the company at $4 per unit for aggregate gross proceeds of $130 million.
As quoted in the press release:
Each Unit will consist of one common share (a “Common Share”) and one half of one common share purchase warrant (each full warrant, a “Warrant”) of the Company (the “Offering”).Each Warrant will be exercisable to acquire one common share of the Company for a period of two years following the closing date of the Offering at an exercise price of $5.60 per common share, subject to adjustment in certain events.
The Company has also granted the Underwriters an option to purchase up to an additional 4,875,000 Units under the Offering at a price of $4.00 per Unit (the “Over-Allotment Option”). If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $149,500,000. The Over-Allotment Option is exercisable, in whole or in part, at any time up to 30 days following the closing date of the Offering.
The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes.
The Offering is expected to close on or about January 30, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.