Cansortium Inc. (“Cansortium” or the “Company”) (CSE: TIUM.U), (OTCQB: CNTMF), today announced the second and final closing of its previously announced private placement of units (“Units“) at a purchase price of US$0.70 per Unit (the “Private Placement”). The second closing was approximately US$5.2 million, bringing the total Private Placement investment to US$17.1 million. Each Unit consists of one common share of the Company (each, a “Share“) and one-half of one common share purchase warrant (each whole warrant, a “Warrant“). Each Warrant will entitle the holder thereof to purchase one common share of the Company (a “Warrant Share“) for a period of 24 months following the closing date at an exercise price per Warrant Share equal to US$0.90.
As previously announced, proceeds from the Private Placement will provide the necessary capital to accelerate the Company’s growth initiatives in both Florida and Michigan. In Florida, where the Company currently operates two cultivation facilities and 24 retail dispensaries (with 3 more to be opened shortly), the proceeds from the Private Placement will be used to: (i) immediately complete Phase 2 of the Company’s new Sweetwatercultivation facility, more than doubling that facility’s annual production capacity from 3,000 lbs. to more than 6,000 lbs. of high quality flower, (ii) construct a new building at the Sweetwater facility to more efficiently trim, process and package the increased flower supply; and (iii) create four additional grow rooms in the Tampa cultivation facility to increase the supply of flower and biomass by approximately 2,400 lbs. annually and to improve operating efficiencies. In addition, proceeds from the Private Placement will help accelerate opening two new dispensaries in Pennsylvaniaand an additional two in Florida by year-end, thereby increasing the Company’s dispensary footprint to 31 locations. In Michigan, the Company will expand its existing cultivation facility and construct additional support infrastructure to capitalize on the strong demand for recreational cannabis throughout the state.
Canaccord Genuity acted as Financial Advisor to Cansortium on the Private Placement.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares and Warrants and any underlying securities shall be subject to a four month hold period from the closing date for Canadian investors. The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Cansortium in any jurisdiction in which such offer, solicitation or sale would be unlawful.
