Planet 13 Holdings Inc. (CSE:PLTH)(OTCQX:PLNHF), a leading vertically-integrated Nevada cannabis company, is pleased to announce that it has completed its previously announced bought deal financing for aggregate gross proceeds of C$69,028,750 (the “Offering“).
A total of 9,861,250 units (the “Units“) of the Company were sold pursuant to the Offering, including an aggregate of 1,286,250 Units issued as a result of the full exercise of the over-allotment option (the “Over-Allotment Option“), at a price of C$7.00 per Unit.
The Offering was conducted by a syndicate of underwriters co-led by Beacon Securities Limited and Canaccord Genuity Corp. (collectively, the “Underwriters“).
Each Unit consists of one (1) common share (a “Common Share“) in the capital of the Company and one- half (1/2) of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant“). Each Warrant entitles the holder thereof to acquire one Common Share at an exercise price of C$9.00 per Common Share for a period of 24 months from the closing of the Offering.
The Company has received approval from the Canadian Securities Exchange (“CSE“) to list the Warrants for trading on the CSE. The Warrants are expected to commence trading under the ticker symbol “PLTH.WT.D” on the date hereof.
The Underwriters received a cash commission equal to 6.0% of the gross proceeds from the sale of the Units pursuant to the Offering (including the gross proceeds raised pursuant to the full exercise of the Over-Allotment Option). The Underwriters also received compensation options (each a “Compensation Option“) equal to 6.0% of the number of Units sold pursuant to the Offering (including the additional Units sold pursuant to the full exercise of the Over-Allotment Option). Each Compensation Option entitles the Underwriters to purchase one Common Share at a price of C$7.00 per Common Share for a period of 24 months from the closing of the Offering.
The net proceeds from the Offering will be used for potential acquisitions for purposes of retail, cultivation and production expansion outside of Nevada, as well as general corporate and other working capital purposes.
