By Abigail W. Adams
Portland, Me., Jan. 29 – ABcann Global Corp. priced C$30 million of three-year unsecured convertible debentures prior to the market open on Monday with a coupon of 6% and an initial conversion premium of approximately 5%.
Canaccord Genuity Corp. and Eight Capital are lead underwriters for the bought deal, which carries a greenshoe of C$4.5 million, according to a company release.
The convertible debentures were priced concurrently with a C$40.25 million offering of 11.5 million units of the company at C$3.50 a unit. Each unit consists of a common share and a one half-share purchase warrant.
Each full warrant is exercisable for one share and has a strike price of C$4.25. The warrants expire in two years. The company may accelerate the exercise period for the warrants if the trading price of common shares is C$7 or higher over a 15 day period.
There is an approximately C$6 million, or 1.725 million, greenshoe for the units.
The company and underwriters will make efforts to qualify the distribution of common shares issuable upon conversion of the company’s existing C$30 million in convertible debentures, issued on Dec. 21, 2017, under the short form prospectus for the current offering, according to the company release.
Net proceeds from the units and convertible debentures are expected to be C$80,787,500 if the greenshoe is exercised in full. Proceeds will be used for the construction and development of the company’s existing Vanluven facility and planned Kimmett facility, both in Napanee, Ont., for product development, and for general corporate purposes.
ABcann Global is a Napanee, Ont.-based licensed producer and distributor of pharmaceutical-grade cannabis products.
| Issuer: | ABcann Global Corp.
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| Issue: | Unsecured convertible debentures
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| Amount: | C$30 million
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| Maturity: | Feb. 21, 2021
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| Coupon: | 6%
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| Price: | Par
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| Conversion premium: | 5%
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| Conversion price: | C$4.00
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| Bookrunners: | Canaccord Genuity Corp. and Eight Capital
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| Distribution: | Short form prospectus in certain provinces, except Quebec
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| Concurrent offering: | 11.5 units consisting of 1 share and a half-share purchase warrant exercisable at C$4.25 for two years
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| Pricing date: | Jan. 29
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| Settlement date | Feb. 21
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| Stock symbol: | TSX Venture: ABCN
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| Stock price: | C$3.81 at market close Jan. 26
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| Market capitalization: | C$436.22 million
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