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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index lost 17.87 to 304.13, while the CSE Composite Index lost 13.95 to 1,000.18. The Supreme Cannabis Company Inc. (FIRE) lost three cents to 32 cents on 71 million shares, after arranging yet another sizable share issuance. This time it is proposing a $22.5-million bought deal of 31-cent units, with each unit comprising a share and half a warrant.
Supreme will use the proceeds in part for "growth initiatives" and other "strategic opportunities." The same vague but upbeat jargon appeared a mere three weeks ago, when the company closed a $22.9-million overnight offering of 23-cent units (again comprising a share and half a warrant). Although participants in that financing have made money on paper, longer-term shareholders are increasingly frowning on the steady stream of dilution. In addition to the financings, Supreme has been making use of an at-the-market equity program (ATM), and in September it carried out an extensive shares-for-debt swap. Its share count, which was already on the high side this time last year at 354 million, is about to exceed 701 million.
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