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Transcanna Holdings Inc
Symbol C : TCAN
Shares Issued 31,765,526
Close 2019-06-07 C$ 4.92
Recent Sedar Documents

Transcanna closes $10-million private placement

2019-06-07 09:27 ET - News Release

Mr. James Pakulis reports

TRANSCANNA ANNOUNCES CLOSING OF CDN$10 MILLION BROKERED PRIVATE PLACEMENT OF UNITS

Transcanna Holdings Inc. has closed its previously announced brokered private placement of units, generating aggregate gross proceeds of $10,001,750.

An aggregate of 2,000,350 units of the company were sold at a price of $5 per unit. The offering was conducted by a syndicate of agents co-led by Haywood Securities Inc., Canaccord Genuity Corp. and PI Financial Corp.

Each unit comprised one common share of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire an additional share at a price of $6 until June 7, 2022. The warrants are subject to an acceleration clause that would require their exercise within 30 days of notice from the company in the event that the price of the shares closes at or above $10 for a period of 20 consecutive trading days.

The warrants are issued pursuant to a warrant indenture dated June 7, 2019, between the company and its warrant agent, Odyssey Trust Company. A copy of the warrant indenture is available under the company's profile on SEDAR. The company has agreed to seek a listing of the warrants on the Canadian Securities Exchange at such time as all applicable resale restrictions have lapsed, subject to receipt of listing approval.

A commission of 7 per cent of the gross proceeds of the offering was paid through the payment of $700,122.50 in cash, as well as a corporate finance fee of $150,000, plus applicable taxes. In addition, the agents received an aggregate of 140,024 transferable compensation options to acquire up to 140,024 shares at a price of $5 per share until June 7, 2022.

The company intends to use the net proceeds of the offering to finance further equipment purchases for its vertically integrated cannabis facility in Modesto, Calif., additional acquisitions, including the previously announced proposed acquisitions of Biovelle, Soldaze and Lyfted Farms, and for working capital and general corporate purposes.

All securities issued pursuant to the offering are subject to a four-month hold period expiring on Oct. 8, 2019, in accordance with applicable Canadian securities laws.

In other news, the company has engaged Umbrella Capital Group Ltd. to conduct market-making activities for the company at a rate of $30,000 per month for a three-month term. Umbrella Capital Group is an independent financial services organization based in Toronto.

About Transcanna Holdings Inc.

Transcanna Holdings is a Canadian-based company that is focused on providing integrated branding, transportation and distribution services, through its wholly owned California subsidiaries, to a range of industries, including the cannabis marketplace.

We seek Safe Harbor.

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