Multi-state cannabis license owner Acreage Holdings has raised over $314m ahead of filing its listing statement with the Canadian Securities Exchange (CSE).
Headquartered in New York City, Acreage is a vertically integrated, multi-state owner of cannabis licenses and assets in US states where either medical and/or adult use of cannabis is legal.
Acreage Holdings (formerly Applied Inventions Management and High Street Capital Partners) has announced that it has continued from Ontario to British Columbia and completed certain corporate steps in connection with the Continuance, including changing its name to Acreage Holdings, Inc. in further of the Proposed Transaction, and Acreage Finco B.C. Ltd. (Finco), a special purpose vehicle.
Acreage has completed a private placement financing of subscription receipts for gross proceeds of $314,153,600.
The offering was comprised of a brokered offering of 8,388,000 Subscription Receipts for gross proceeds of $209,700,000, which was led by Canaccord Genuity Corp., as lead agent and sole bookrunner, and included Beacon Securities Limited, Cormark Securities Inc., Eight Capital and Haywood Securities Inc., and a non-brokered offering of 4,178,144 Subscription Receipts for gross proceeds of $104,453,600.
The Subscription Receipts will convert into common shares of Finco upon satisfaction of the escrow release conditions set out in the agency agreement entered into among the Agents, Finco, Acreage and the Company.
The net proceeds raised in connection with the Offering, after fees and expenses incurred, and less 50% of the agents’ commission, have been deposited with Odyssey Trust Company, as subscription receipt agent and escrow agent.
The escrowed proceeds will be held by Odyssey until the Escrow Release Conditions have been satisfied.
It is anticipated that the Escrow Release Conditions will be satisfied and the Proposed Transaction will be completed on or about November 14, 2018.
Additional details regarding the foregoing will be provided in the Company’s listing statement to be filed with the Canadian Securities Exchange (“CSE”) on or about November 14, 2018.
The Continuance, the Company reorganization and the related matters set forth above were completed as the first step in the Proposed Transaction and, it is currently anticipated, that the remaining steps of the Proposed Transaction will be completed on or about November 14, 2018.
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