CannaRoyalty Corp. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. who’ve agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of units at a price of $3.00 per Unit ( for aggregate gross proceeds to CannaRoyalty of $15,000,000 .
Each Unit will be comprised of one common share of the Company (a “Common Share”) and half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of 2 years following the closing date of the Offering (the “Closing Date”) at an exercise price of $4.50 per Warrant Share. The Warrants will be subject to a 21-day forced exercise provision if the Company’s daily volume weighted average share price is greater than $6.00 for 15 consecutive trading days.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec. The Company intends to use the net proceeds from the Offering for acquisitions, continued funding of the development of its existing holdings, general corporate and working capital purposes. The Offering is expected to close on February 15, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.
In connection with the Offering, KES 7 Capital Inc. has been appointed as a special advisor to the Company.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements.