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Thursday, Feb 22, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

The weed wire

Aleafia Health closes $15M bought deal offering

Outdoor producer updates ALEF trading symbol to AH

Aleafia Health closes $15M offering
Aleafia reports first-ever positive adjusted EBITDA in Q4

As capital remains scarce for most Canadian cannabis companies, Aleafia Health, Inc. (TSX: AH) said it closed a $14.95 million bought deal offering Friday.

The deal included the issuance of 23 million company units at a price of $0.65 per unit, and includes the full exercise of the overallotment option to issue extra shares, the company said in a statement.

Each unit consists of one common share and half of a common share purchase warrant. The warrant will be allow holders to purchase one common share at an excise price of $0.80 for the next three years.

The offering was led by Eight Capital on behalf of underwriters including: financial services firms Canaccord Genuity Corp., and Raymond James, Ltd.; the Bank of Montreal Capital Markets; and investment firms Leede Jones Gable, Inc., Mackie Research Capital, Corp., and PI Financial, Corp.

Read more: Aleafia Health to provide medical cannabis delivery in southern Ontario

Aleafia Health paid the underwriters a cash fee of 6 per cent of the aggregate gross proceeds as well as 805,000 non-transferable compensation warrants. The compensation warrants can be exercised into units at a price of $0.65 over the next three years.

On Friday, company shares were trading at $0.57 per share, down from early May when it was trading at $0.76 per share.

Aleafia Health changes ticker to AH, books digital AGM

The company also updated its trading symbol from ALEF to AH on May 27.

Warrants issued in connection to the bought deal offering will trade on the Toronto Stock Exchange as of Friday under the symbol AH.WT.A.

Earlier in the month, Aleafia reported its second consecutive quarter of positive cash flow, with a positive earnings before interest, taxes, depreciation and amortization of $6.4 million and $13.7 million in net revenue.

Read more: Aleafia Health boasts industry-leading gross margin in Q1 report

Aleafia Health’s annual shareholder meeting is going digital. Due to the COVID-19 pandemic the June 30, 2020, meeting will be held online at 10 a.m. EDT, on a virtual interface.

“Shareholders will not be able to attend the Meeting in person this year and are strongly encouraged to vote in advance of the Meeting by proxy,” the company said in its statement.

Top image via Aleafia Health


1 Comment

1 Comment

  1. One might be inclined to think Aleafia were on the right track by firing Julian Fantino and Raf Souccar, but this issuance is a senseless cash grab by a company not necessarily wanting to appear as desperate as they are.

    Look for the Aleafia Yard Sale (e.g. assets and properties sold off to pay warrants) by Nov. 2020.

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