Nevada-based Flower One Holdings Inc. has closed its previously announced overnight marketed public offering of unsecured convertible debenture units of the company for aggregate gross proceeds of US $50m.
Flower One is a leading cannabis cultivator, producer and innovator in Nevada.
“The success of this offering highlights the strong interest from investors and their increased confidence in the execution of our business model and strategy,” said Ken Villazor, President and CEO of the Company.
“This funding better positions Flower One to capitalize on the continued growth and opportunities in Nevada and solidify our initial entry into the U.S. cannabis market as we continue to develop our best-in-class production facility.”
The offering was completed pursuant to an agency agreement dated March 22, 2019 with Mackie Research Capital Corporation and Canaccord Genuity Corp, on behalf of a syndicate of agents including Cormark Securities Inc., Eight Capital, Industrial Alliance Securities Inc., and PI Financial Corp..
The net proceeds received by the company from the offering are intended to be used for the payment of outstanding notes, ongoing construction and development of its Nevada production facility, working capital and general corporate purposes.
Each Debenture Unit consists of one 9.5% unsecured convertible debenture maturing three years from the date of issuance and 192 common share purchase warrants of the company.
Flower One owns and operates a 25,000 square-foot cultivation and production facility in North Las Vegas, with nine grow rooms, and owns the established NLV Organics consumer brand of cannabis products.Cannabis Business Worldwide