Benzinga | Oct 20, 2021 12:11PM EDT

Avicanna Raises $3.2M Via Non-Brokered Offering, Announces Warrant Repricing

Cannabis-focused biopharmaceutical company Avicanna Inc. (TSX:AVCN) (OTCQX:AVCNF) (FSE: 0NN) confirmed Tuesday that it had closed a non-brokered private placement raising CA$3.9 million ($3.16 million). Under the offering, the company

issued an aggregate of 4.59 million units, at a price of CA$0.85 per unit.

Each unit consisted of one common share of the company and one share purchase warrant. Each warrant is exercisable into one Avicanna's share at a price of CA$1.10 per warrant share in the following three years from the closing of the offering.

The Toronto-based company plans to use the collected proceeds to support standard working capital activities, general and administrative expenses, expenditures related to production and manufacturing, as well as research and clinical development.

In connection with the closing of the offering, the company paid aggregate finders' fees of approximately $65,000 to eligible finders.

In addition, the company announced the proposed repricing of ?1.59 million ?common share purchase warrants, expiring September 20, 2024, ?issued to the lender that advanced the secured term loan in the principal amount of $2.12 million to the company in August 2021. The exercise price of the term loan warrants will be repriced from $1.13 to $1.10 being the same exercise price of the warrants issued in connection with the offering.

More recent news from Avicanna:

Avicanna Ships Its Feminized Cannabis Seeds To Peru And Argentina

Avicanna Files Patent For New Cannabinoid-Based Epilepsy Medication

Avicanna Completes Registration And Commercial Export Of Pura Earth CBD Brand In Ecuador

Avicanna Reaches Brazil With Aureus Branded Full Spectrum Psychoactive CBD Cannabis Extracts

Price Action

Avicanna's shares closed Tuesday market session 3.17% higher at 64 cents per share.

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