In the quest to raise capital for operations in the rapidly expanding cannabis industry, Khiron Life Sciences Corp. (TSXV:KHRN; OTCQB:KHRNF) just scored a victory with the closing of a bought deal financing offering.
Khiron today secured $28.8 million in financing through a short form prospectus offering of common shares. The offering includes just over 13 million shares at $2.20 a share, slightly below the company’s stock’s current pricing of $2.65 a share.
TSX Venture Exchange approval will be required before the deal is finalized as regulatory filings are completed.
The offering was underwritten by a cooperation between Cormark Securities Inc, Canaccord Genuity Corp, and BMO Nesbitt Burns Inc, who will receive a 6% gross proceed commission off the investment.
Khiron stated the newly acquired financing will be utilized to buy new grow equipment and complete facility expansion construction projects, expand product offerings, and fund upcoming yet-to-be-announced acquisition deals.
The company’s stock has seen a significant bump in recent weeks as Khiron positions itself in the Latin American cannabis market, including a $13.7 million acquisition of Uruguayan company Cannapur.
Last month, Khiron Life Sciences additionally signed a letter of intent to create a new joint venture with Dixie Brands Inc. (CSE: DIXI.U) for releasing new cannabis and CBD product lines in both Latin America and the U.S.
Under the terms of that partnership, Khiron will cultivate and manufacture products from a facility in Colombia, while Dixie will contribute product formulation processes and a well-known brand portfolio.
The joint venture was brought to fruition with advisement by Hillcrest Merchant Partners Inc., which will receive an undisclosed number of shares from Khiron and Dixie brands in payment.
Khiron’s Chief Executive Officer Alvaro Torres had this to say about the recently announced partnership:
With former Mexican president Vicente Fox on the board of directors, Khiron has focused heavily on Latin American operations, including holding medical staff training events to increase education about cannabis in both Colombia and Mexico.
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