MediPharm Labs raises C$60 million by selling stock

MediPharm Labs, which specializes in research-driven cannabis extraction and cannabinoid isolation, has entered into an agreement with Scotiabank to sell shares with gross proceeds of C$60m.

Scotiabank repped a syndicate of underwriters, including GMP Securities L.P. and BMO Capital Markets. These underwriters agreed to purchase on a bought deal basis 10,815,000 common shares of MediPharm at a price of C$5.55 per share.

The company has granted the underwriters an option to purchase up to an additional 1,622,250 Shares on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the offering for over-allotment and market stabilization purposes.

The shares will be offered in all provinces of Canada, except Québec, pursuant to a short form prospectus to be filed by MediPharm Labs, as well as in the United States under applicable registration statement exemptions.

MediPharm says that it plans to use the net proceeds from the offering to fund its ongoing capital expenditures at its Canadian and Australian facilities, for domestic and international expansions, research and development and general corporate purposes.

The Offering is expected to close on or about June 17, 2019.

Founded in 2015, MediPharm Labs was the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation license.Cannabis Business Worldwide