This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.
Here is a sample of this item:
by Stockwatch Business Reporter
The S&P/TSX Cannabis Index dropped 0.72 point to 153.16 Friday, ending the week down 3.24 points. The Canadian Securities Exchange Composite Index fell 0.37 point to 379.51, but finished the week up 10.18 points. Zenabis Global Inc. (ZENA) sank 5.5 cents to nine cents on 106.87 million shares, easily its highest trading volume ever. The drop comes on the news of its $15-million financing, which the company announced yesterday after the market closed.
Today, Zenabis increased the financing to $20.4-million. The financing is being co-led by AltaCorp Capital Inc. and Eight Capital. With the increased size of the financing, Zenabis will issue 157 million units at 13 cents (significant dilution against Zenabis's 431 million shares outstanding). Each unit will include a share and a warrant. If the overallotment option is exercised, the financing will be for $23.5-million.
As outlined in yesterday's Cannabis Summary, Zenabis has been in financial trouble for some time. As of March 31, the company had a working capital deficit of $46.2-million and it had burnt through cash of $14-million in the first quarter. After today's fall, Zenabis's nine-cent closing price is down over 95 per cent from its 52-week high of $2.23.
The remainder is available to Stockwatch subscribers.
© 2020 Canjex Publishing Ltd. All rights reserved.