TORONTO — Avicanna Inc., a biopharmaceutical company focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products, closed a strategic non-brokered private placement with PG Equity Group I LLC. PG Equity Group is helmed by founder and Managing Partner Michael W. Porter, a pharmaceutical executive with more than 25 years of experience across life sciences and private equity.
The placement offering of 3,333,334 units of the company at a price of C$0.15 per unit for aggregate gross proceeds of C$500,000. Each unit comprises one common share in the capital of the company and one-half of one common share purchase warrant of the company. Each Warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.20 per share, subject to adjustment in certain events, until Aug 18, 2029.
The company intends to use the proceeds from the offering for general working capital purposes, general and administrative expenses, expenditures related to production and manufacturing, and research and clinical development. The unit shares and warrants, and any securities issuable upon conversion or exercise thereof, are subject to a four-month hold period under applicable securities laws in Canada. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.
