MedReleaf Closes $100.5 Million Bought Deal Financing

MedReleaf (TSX:LEAF) announced it completed an offering on a “bought deal” basis of an aggregate of 6,072,600 common shares of the company for $16.55 per share.

As quoted in the press release:

The Company offered and sold a total of 3,625,470 Offered Shares (the “Treasury Offering”), and an aggregate of 2,447,130 Offered Shares were offered and sold by certain selling shareholders of the Company (the “Secondary Offering”), namely: Zola Finance Inc., Rayray Investments Inc., Baronford Capital Corporation, AJA Holdings 2013 Inc. and MENA Investment Network Inc. (collectively, the “Selling Shareholders”), resulting in aggregate gross proceeds of approximately $100.5 million, with MedReleaf and the Selling Shareholders receiving gross proceeds of approximately $60.0 million and $40.5 million, respectively.

The Company intends to use the net proceeds from the Treasury Offering to finance the acquisition and/or construction of additional cannabis production and manufacturing facilities in Canada as well as in other jurisdictions with federal legal cannabis markets, where warranted by the opportunities available to MedReleaf, and the expansion of the Company’s marketing and sales initiatives.

Click here to read the full press release.

Source: www.newswire.ca