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Columbia Care Announces Corporate Actions to Accelerate Operational Efficiencies and Cash Flow Generation
NEW YORK, July 31, 2023--(BUSINESS WIRE)--Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) ("Columbia Care" or the "Company"), one of the largest and most experienced cultivators, manufacturers and retailers of cannabis products in the U.S., today provided additional corporate updates following on the separate announcement earlier today.
"Over the past 16 months, we have implemented important changes to Columbia Care that have resulted in a stronger and more efficient company. We have an outstanding portfolio of scaled markets – one of the best in the industry – with key states like New York and Maryland having recently transitioned to adult use, Delaware poised to transition to adult use, and additional retail locations in growth markets such as New Jersey and Virginia under development, all of which should fuel continued topline growth opportunities and facilitate the rollout of our national retail brand, Cannabist, as well as our portfolio of category-leading product brands. In addition, we have taken steps to enhance our liquidity position, reduce interest expense, extend debt maturities, and have continued to reduce costs at the corporate level to enhance profitability. Including the impact of the organizational changes announced today and the recent integration of Green Leaf Medical, LLC, since December 2022, we have eliminated over $38 million, net, in annual expense, while also improving our organizational design to accelerate decision-making and leverage our scale in markets more effectively. This also sets the stage for the execution of our capital markets strategy and enables us to proactively manage our balance sheet. Over the next 12 months, we intend to launch a number of initiatives to further our goals of ongoing margin improvement, free cash flow generation, driving shareholder value and profitably capturing additional market share across the country," said Nicholas Vita, CEO of Columbia Care.
Vita continued, "With the uncertainty of the past 16 months behind us, along with the enthusiasm and energy that accompanies moments of renewal, our team welcomes the next stage of Columbia Care’s growth and expansion. In spite of the challenges we have faced, the team has remained committed to the success of our Company and, as is obvious from the pace of activity, has been engaged at all levels, actively preparing for the future. We are excited to show our stakeholders, communities and one another what we are capable of, and I am grateful to all of my colleagues for keeping our mission and values at the forefront of everything we do."
Business Update
The following capital markets and operational initiatives are intended to drive shareholder value, improve profitability, accelerate the reduction of debt and interest expense, and improve free cash flow:
The Company has received commitments from several of its largest holders of its 13% senior secured notes due May 2024 (the "2024 notes") to exchange into the Company’s 9.5% senior secured notes due February 2026, on a one-for-one basis. The Company is in ongoing discussions with a limited group of additional bondholders to exchange more 2024 notes under the same structure. These private exchange agreements will meaningfully reduce the amount of the $38.2 million principal of notes due in May 2024, reduce the cash interest cost for the exchanged notes by 350 basis points, and extend the maturity of the converted notes to February 2026. More details will be provided upon closing of the exchange which will be in the third quarter. The Company intends to pursue additional alternatives to reduce debt, reduce interest expense and extend maturities. In that vein, Columbia Care has been contacted by several of the largest debtholders in addition to those holders of the 2024 notes that have already committed to the ongoing exchange, in order to facilitate the Company’s balance sheet enhancement efforts.
Columbia Care has completed the final phase of its previously announced corporate restructuring plan and expects to realize an additional net benefit to EBITDA of approximately $950,000 in 2023 and approximately $3.8 million in 2024. The primary source of the additional savings is a 52-person headcount reduction, primarily from gLeaf corporate redundancy, as well as facility rightsizing and dispositions. These operational improvements are expected to be cash flow positive in 2023 and 2024.
Following the announcement of the first stage of non-core/underperforming asset sales in Missouri, the Company announced today that it has closed on the sale of its Downtown Los Angeles facility, consisting of a single dispensary and approximately 36,000 square feet of cultivation capacity. Gross proceeds are approximately $9 million, and the Company expects to net $3 million after taxes and the repayment of the outstanding mortgage. This sale will not only add to the Company’s cash balance but will also reduce overall debt and make permanent a net reduction in annual operating costs of more than $8.5 million for Columbia Care operations in California. All asset sale proceeds are being prioritized for debt reduction.
Based on advanced discussions the Company is having with a U.S. senior exchange, Columbia Care is announcing that it will consolidate its equity trading activity onto the Cboe Canada, the new business name of the NEO Exchange. In connection with this corporate action, Columbia Care is submitting a request to voluntarily delist its securities from its secondary, venture exchange, the Canadian Securities Exchange (the "CSE"). The effective date of the CSE delisting will be made public when confirmed and is subject to the CSE’s approval. Cboe Canada will remain the Company’s primary exchange, as it has been since the Company’s initial public listing. As one of two U.S. multistate cannabis operators listed on a senior exchange, the Company remains committed to maintaining its unique access to institutional investors, including inclusion in MSCI1 equity index benchmarks and their corresponding investors. Focusing trading activity on a single, senior exchange will allow for a more orderly closing price formation and greater transparency for the company and investors. As part of the process to complete an uplisting to a senior U.S. exchange and enhance investor flexibility, based on several factors including uplisting timing, market conditions and normalized trading dynamics, the company intends to pursue a share consolidation, to satisfy margin eligibility or initial listing requirements. The Company already reports in U.S. GAAP and is an SEC registrant in good standing.
Finally, the Company also announced two senior leadership changes. Effective today, Columbia Care has named David Hart as President & Chief Operating Officer and Jesse Channon as Chief Commercial Officer. Mr. Hart will continue to oversee all revenue-driving functions and Mr. Channon, formerly Chief Growth Officer, will oversee retail, wholesale, technology innovation, marketing, and communications.
Over the next several quarters, Columbia Care looks forward to sharing additional updates to highlight the impact of operational improvements as well as those changes we intend to implement to enhance profitability, beginning with our second quarter earnings release on August 14.
Conference Call and Webcast Details
The Company will host a conference call today, July 31, 2023 at 9:00 a.m. ET to discuss the announcement.
To access the live conference call via telephone, participants must pre-register at https://register.vevent.com/register/BId3571a1adc1d4132bae86dd53b2ae85c. After registering, instructions will be shared on how to join the call for those who wish to dial in. A live audio webcast of the call will also be available in the Investor Relations section of the Company's website at https://investors.columbia.care/ or at https://edge.media-server.com/mmc/p/poyxfkhh.
A replay of the audio webcast will be available in the Investor Relations section of the Company’s website approximately 2 hours after completion of the call and will be archived for 30 days.
Mon, July 31, 2023 at 7:21 AM CDT
CHICAGO, July 31, 2023--(BUSINESS WIRE)--Cresco Labs (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) ("Cresco" or "the Company") and Columbia Care (NEO:CCHW) (CSE:CCHW) (OTCQX:CCHWF) ("Columbia Care") today announced a mutual agreement, dated July 30, 2023, to amicably terminate the definitive arrangement agreement dated March 23, 2022, as amended on February 27, 2023, pursuant to which Cresco agreed to acquire all of the issued and outstanding shares of Columbia Care (the "Transaction"). There are no penalties or fees related to the mutual agreement to terminate the Transaction.
"In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders. We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction," said Charles Bachtell, CEO and Co-founder of Cresco Labs.
He continued, "Moving forward, we remain committed to our Year of the Core strategy, which involves the swift restructuring of low-margin operations, improving competitiveness and driving efficiencies in markets where we maintain leading market share, and scaling operations to prepare for growth catalysts in emerging markets. A strong core will enable us to take advantage of the margin accretive, growth opportunities we foresee within this tough economic time for the cannabis industry. While this is not the outcome we originally hoped for, we are confident Cresco Labs is in a stronger position moving forward."
"After careful consideration, we are confident in the mutual decision to move forward as separate, standalone companies. This is the best path forward for Columbia Care’s employees, customers, and shareholders. We are thankful for the collaboration and partnership with the Cresco team throughout this extensive process," said Nicholas Vita, CEO and Co-founder of Columbia Care. "Over the last 16 months we have reviewed every aspect of our business, remained decisive and have made substantive changes that significantly improved our operations — positioning us with significant strategic and operational strength at this inflection point in the company’s history. We are looking forward to realizing the benefits of these changes as well as focusing on the opportunities in our outstanding footprint in markets with embedded upside; diversified portfolio of brands; our award-winning national retail brand, The Cannabist; recently implemented operational and organizational efficiencies; proactive balance sheet management activities; and meaningful equity capital markets initiatives that will propel Columbia Care into one of the most profitable and resilient companies in the industry over the next several years."
As an additional update, the definitive agreements dated November 4, 2022, to divest certain New York, Illinois and Massachusetts assets of Cresco and Columbia Care to an entity owned and controlled by Sean "Diddy" Combs have also been terminated, effective July 28, 2023.
I think there was a data feed issue. Looks like it's been fixed.
Doge for SPZI
Musk??
A cannabis run similar to the one that started last October would certainly be nice.
Our savior is here at last!
I thought the TSX was closed today for the Civic holiday.
Count your blessings...I was in CVM and CTXR when news hit this week.
Happy Canada Day! TSX is closed today. Probably explains the screwy spread.
They've been spamming all over Yahoo.
Nice to see some green for a change!
WTF...nice close!
Nice get. Bargains aplenty in the MJ sector today.
Looks like the result of a Fox News overdose.
Columbia Care Announces US$74.5 Million Private Placement Offering of 6.00% Secured Convertible Notes Due 2025
Download as PDFJune 17, 2021 6:40pm EDT
NEW YORK, June 17, 2021 /CNW/ - Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) ("Columbia Care" or the "Company") today announced that it has received commitments to complete a private placement of up to US$74,500,000 (the "Offering") aggregate principal amount of 6.00% secured convertible notes due 2025 (the "Notes").
The Offering is being conducted on a "best-efforts" basis pursuant to an agency agreement entered into on June 17, 2021 between the Company and a syndicate of agents. Canaccord Genuity is acting as sole bookrunner and co-lead agent for the Offering, and ATB Capital Markets is acting as co-lead agent for the offering. A.G.P./Alliance Global Partners is acting as financial advisor.
The Notes will be senior secured obligations of the Company and will accrue interest payable semi-annually in arrears and mature on June 29, 2025, unless earlier converted, redeemed or repurchased. The conversion rate will be 154 common shares of the Company ("Common Shares") per $1,000 principal amount of Notes (equivalent to a price of approximately US$6.49 per Common Share), subject to customary adjustments. The conversion price of the Notes represents a premium of approximately 25% over the closing price of the Common Shares on the NEO Exchange on June 17, 2021.
The Company may redeem the Notes, in whole or in part, on or after June 29, 2023, if the volume weighted average price of the Common Shares trading on the Canadian Stock Exchange or the NEO Exchange for 15 of the 30 trading days immediately preceding the day on which the Company exercises its redemption right, exceeds 120% of the conversion price of the Notes.
The closing of the Offering is expected to occur on or about June 29, 2021 (the "Closing Date") and is subject to the completion of formal documentation and receipt of all regulatory approvals, including the approval of the NEO Exchange and the Canadian Securities Exchange. The Notes will be offered for sale on a private placement basis in certain provinces of Canada pursuant to applicable exemptions from the prospectus requirements of Canadian securities laws. The Notes may also be sold in the United States to or for the account or benefit of "U.S. persons" (as defined in the United States Securities Act of 1933, as amended) (the "U.S. Securities Act"), on a private placement basis to "qualified institutional buyers" pursuant to an exemption from the registration requirements of the U.S. Securities Act, and in such jurisdictions outside of Canada and the United States as may be agreed upon by Canaccord and the Company, in each case in accordance with applicable laws. The Notes issued will be subject to a customary four-month hold period under Canadian securities laws.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Notes have not been and will not be registered under the U.S. Securities Act or any state securities laws. Accordingly, the Notes may not be offered or sold within the United States or to or for the account or benefit of "U.S. persons" unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Columbia Care
Columbia Care is one of the largest and most experienced cultivators, manufacturers and providers of medical and adult use cannabis products and related services with licenses in 18 US jurisdictions and the EU. Columbia Care currently operates 122 facilities1 including 92 dispensaries and 30 cultivation and manufacturing facilities. Columbia Care is one of the original providers of medical cannabis in the United States, and continues to deliver industry-leading products and services. The company launched Cannabist, its new retail brand, creating a national dispensary network that leverages proprietary technology platforms. Through its dispensary network, the company offers products spanning flower, edibles, oils, and tablets, and manufactures popular brands including Seed & Strain, Triple Seven, Classix, Plant Sugar, Press, Amber and Platinum Label CBD. Columbia Care is known for setting the standard for compassion, professionalism, quality, care, and innovation in the rapidly expanding cannabis industry. For more information on Columbia Care, please visit www.col-care.com.
Caution Concerning Forward-Looking Statements
This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements concerning Columbia Care's objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of Columbia Care as well as statements relating to the closing of the Offering and the use of proceeds thereof. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would", "could", "should", "continue", "plan", "goal", "objective", and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
The purpose of forward-looking statements is to provide the reader with a description of management's expectations, and such forward-looking statements may not be appropriate for any other purpose. In particular, but without limiting the foregoing, disclosure in this press release as well as statements regarding the Company's objectives, plans and goals, including future operating results and economic performance may make reference to or involve forward-looking statements. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. No undue reliance should be placed on forward-looking statements contained in this press release. Such forward looking statements are made as of the date of this press release. Columbia Care undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
1 Pro forma facilities either open or under development; includes facilities where Columbia Care provides consultative services pursuant to the terms of a management service agreement
SOURCE Columbia Care Inc.
For further information: Contacts: Investor Contact, Lee Evans, Investor Relations, +1.212.271.0915, ir@col-care.com; Media Contact, Lindsay Wilson, Columbia Care, +1.978.662.2038, media@col-care.com; Gabriella Velez, 5WPR, columbiacare@5wpr.com
Released June 17, 2021
High Tide Provides Timing for Release of Second Quarter 2021 Results and Conference Call
CALGARY, June 17th, 2021 /CNW/ – High Tide Inc. (“High Tide” or the “Company”) (TSXV:HITI) (Nasdaq:HITI) (FRA:2LYA), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, announced today that the Company will release its financial and operational results for the quarter ended April 30, 2021 after market close on Monday, June 28th, 2021. High Tide’s second quarter 2021 financial and operational results will be available on SEDAR and on the Company’s website at www.hightideinc.com/invest.
Following the release of its second quarter financial and operational results, High Tide will host a conference call with Raj Grover, President and Chief Executive Officer, and Rahim Kanji, Chief Financial Officer, at 8:30 AM Eastern Time on Tuesday, June 29th, 2021. The conference call will discuss High Tide’s second quarter 2021 financial and operational results and updates on the Company’s plans for the rest of 2021.
Dial-In Information
US/CANADA Participant Toll-Free Dial-In Number: (833) 570-1148
US/CANADA Participant International Dial-In Number: (914) 987-7095
Conference ID: 7149144
In order to join the conference call, all speakers and participants will be required to provide the Conference ID listed above.
Encore Replay Information (Available until July 6, 2021)
Toll-Free Encore Dial-In Number: (855) 859-2056
Encore Dial-In Number: (404) 537-3406
Conference ID: 7149144
In addition to the toll-free number listed above, participants can also dial (800) 585-8367 to access Encore.
Booo! It's the "stable genius" scare.
Did they fill your entire order without raising the ask?
Up to 1130 now...woohoo!
Most of these articles are completely useless. My link and lil lar's link were both on Investorplace.
Cellular Goods to launch skin care formulated with Willow CBG this fall
10-Jun-2021 By Deanna Utroske
HTTPS://WWW.COSMETICSDESIGN.COM/ARTICLE/2021/06/10/CELLULAR-GOODS-TO-LAUNCH-SKIN-CARE-FORMULATED-WITH-WILLOW-CBG-THIS-FALL
According to the article, they are also working on a line of athletic recovery products. Hopefully, they will expand the relationship with Willow to include CBD.
Thanks...Hopefully we'll have another good week to accumulate at bargain prices.
I thought it was 39.6% for those making over 1 million. That doesn't sound too scary.
We certainly had much bigger gains on lesser news. Delayed reaction, perhaps.
That number came out of his rectum.
Anyone have a date for the next quarterly report?
What happened to diamond hands? LOL
VANCOUVER, BC, May 7, 2021 /CNW/ - Willow Biosciences Inc. ("Willow" or the "Company") (TSX: WLLW) (OTCQX: CANSF) has released its financial and operating results for the three months ended March 31, 2021, reporting significant advancement in its operations and strong liquidity.
"The first quarter represented another significant move forward for us, as we completed our first commercial scale fermentation run and strengthened our balance sheet for success," said Trevor Peters, Willow's President and Chief Executive Officer. "We are entering the next phase for the Company, which is creating new markets for our ultra-pure, sustainably made, cannabinoids, and our world class team has allowed us to be at the forefront of the industry. As the industry continues to move towards increased regulation from a health and safety perspective, there is a need now more than ever for Willow's consistent and safe manufacturing process. We are excited to continue to deliver value for all Willow stakeholders."
Highlights for the Quarter
On January 13, 2021, Willow announced the appointment of Dr. Mathias Schuetz to Vice President, Plant Science. Dr. Schuetz was previously Vice President, Research & Development. The Company also announced the promotion of Dr. Trish Choudhary to Vice President, Research & Development to lead the Company's yeast strain engineering efforts. Dr. Choudhary has been with Willow since April 2019 in the role of Senior Director, Strain Engineering.
On January 19, 2021, the Company announced that it had advanced its work on its proprietary yeast strain producing Tetrahydrocannabinol ("THC") and plans to commercially launch in the Canadian market.
On February 19, 2021, Willow announced the closing of a bought deal public offering of common shares of the Company ("Common Shares") for gross proceeds of approximately $28.75 million (the "Bought Deal"). Under the terms of the Bought Deal, the Company issued 17.4 million Common Shares at a price of $1.65 per Common Share.
On March 3, 2021, Willow announced that the accelerated expiry of approximately 9.3 million Common Share purchase warrants resulted in cash proceeds of approximately $7.9 million.
On March 31, 2021, the Company announced that it had completed the first commercial scale fermentation run of its first cannabinoid for market, cannabigerol ("CBG").
Willow ended the quarter with strong liquidity, including approximately $46.4 million of cash on hand as at March 31, 2021.
Operational Update
During the first quarter of 2021, Willow continued to optimize its yeast strain, fermentation process, and downstream purification process for production of CBG, and it successfully scaled the process to commercial scale fermenters at its first selected contract manufacturing organization ("CMO") facilities based in Europe. Ongoing optimization of the scaled process to further improve production yields will continue in 2021 along with qualification of additional CMOs as required.
The Company continued to work with Signum Biosciences, Inc. to evaluate the safety and activity of its CBG as an ingredient for cosmetics. The Company anticipates completion of the lab-based and clinic-based safety work in the second quarter of 2021. The Company also engaged a regulatory consulting group to attain an Independent Generally Regarded as Safe ("GRAS") conclusion for CBG that is required for use in food and beverage applications.
Willow continued to advance its THC strain and process for production in the Canadian market. The Company will continue strain and process optimization with production of research samples for Canadian partners expected in the second half of 2021. The Company also continued to make progress to increase production of cannabidiol ("CBD") and the "Varin Cannabinoids" at lab scale through application of its proprietary strain engineering technologies. In-house strain and process optimization will continue through 2021.
Financial Update
Willow ended the quarter in a strong financial position, with approximately $46.5 million in cash on hand.
The Company's financial results are summarized as follows:
Three months ended
March 31
2021
2020
Balance sheet ($000's):
Cash and cash equivalents
46,455
15,962
Total assets
52,106
29,512
Shareholder's equity
22,983
21,085
Weighted average shares outstanding
Basic and diluted (000's)
108,897
78,892
New Board Member
Willow is pleased to announce that Ms. Barbara Munroe has been appointed to the Board of Directors of the Company.
"I am pleased to welcome Ms. Munroe to the Board. Her extensive skillset and expertise will further complement our current Board members, and we are confident she will provide valuable perspectives as we continue to execute on our strategy, drive growth and build long-term shareholder value," said Dr. Peter Seufer-Wasserthal, Chairman of Willow.
Ms. Barbara Munroe has more than 25 years of experience as a lawyer and executive in diverse industries. In addition to serving as the current Chair of the Board of Crescent Point Energy Corp., Ms. Munroe has served as an executive in several customer-centric and diverse industries, as EVP, Corporate Services and General Counsel for WestJet Airlines Ltd., the Assistant General Counsel, Upstream at Imperial Oil Ltd., and the Senior Vice President, Legal/IP & General Counsel, Corporate Secretary for SMART Technologies Inc.
Ms. Munroe is a member of the Institute of Corporate Directors and has extensive corporate governance experience. She holds a Bachelor of Commerce, Finance degree and a Bachelor of Laws degree, both from the University of Calgary. Ms. Munroe was admitted to the Law Society of Alberta in 1991 and holds the ICD.D designation.
Outlook
Willow completed its first commercial scale fermentation run of its first cannabinoid, CBG, in Q1 2021 with first sales expected to occur in Q2 2021. While the product volumes are expected to be small to start, this is a significant turning point in the lifecycle of the Company. During the remainder of 2021, Willow plans to optimize its commercial process for CBG, supply product to customers, seed commercial samples to larger organizations, and build out a robust order book for 2022, which the Company expects to be its first full year of commercial production and sales. CBG is a rare cannabinoid and thus Willow is at the forefront of developing that market.
Using the CBG producing yeast strain as a platform cannabinoid to build upon, Willow is working on a number of other cannabinoids and plans to update the market on which cannabinoid it intends to commercialize next later this year and into 2022.
With $46.5 million of cash on the Company's balance sheet as at March 31, 2021, favourable regulatory regime changes being discussed in the United States, a first commercial production run completed and first sales expected in Q2 2021, the Company is in a position of strength to execute on its business plan. While the market for biosynthetically produced cannabinoids is new, Willow is at the forefront of this industry and will continue to demonstrate itself as a market leader.
About Willow Biosciences Inc.
Willow is a Canadian biotechnology company based in Vancouver, British Columbia that develops and produces high-purity, plant derived ingredients for consumer care, food and beverage, and pharmaceutical products. Willow's manufacturing process creates a consistent, scalable, and sustainable product that benefits industry and consumers. Willow's team has a proven track record of developing and commercializing bio-based manufacturing processes and products for both the consumer and pharmaceutical industries.
A peak into the future for DMG, perhaps:
https://ambcrypto.com/how-important-is-30-april-for-bitcoin-and-ethereum/
Probably his shadow...damn groundhog!
Toodles!
Don't know about that, but everything I'm following in the sector is red today. Hope the tide turns soon.
Aphria dropped a bomb on the sector.
VANCOUVER, BC, March 3, 2021 /CNW/ - Willow Biosciences Inc. ("Willow" or the "Company") (TSX: WLLW) (OTCQX: CANSF) is pleased to provide an update on its previously announced acceleration of the expiry date of 9,320,478 common share purchase warrants (the "2020 Warrants") issued on October 29, 2020 (the "Acceleration"). The Company has completed the Acceleration, which has resulted in the issuance of approximately 9,259,404 additional common shares of the Company and cash proceeds to the Company of approximately $7.9 million. As of today, the Company had a cash balance of approximately $48.4 million.
Willow Biosciences Inc. Logo (CNW Group/Willow Biosciences Inc.)
Willow Biosciences Inc. Logo (CNW Group/Willow Biosciences Inc.)
"We are grateful for the considerable support we have received from our shareholders following our recent warrant accelerations," said Trevor Peters, Willow's President and Chief Executive Officer. "As we enter 2021, we will use the proceeds from the Acceleration alongside the $28.75 million we raised from our recent bought-deal financing to accelerate capital spending towards execution of our commercialization plan for our existing portfolio cannabinoids, and continue to explore opportunities for cannabinoids in development."
On January 25, 2021, the Company announced that it had elected to exercise its right under the terms of a warrant indenture dated October 29, 2020 (the "Warrant Indenture") governing the 2020 Warrants to accelerate the expiry date of the 2020 Warrants. The holders of 2020 Warrants had thirty days from the date of the notice of Acceleration to exercise their 2020 Warrants. All remaining 2020 Warrants have been cancelled as of 5:00 p.m. (Calgary time) on March 1, 2021 pursuant to the terms of the Warrant Indenture, and the 2020 Warrants have been delisted from the Toronto Stock Exchange.
Willow was halted in the last hour of trading today. Latest news:
VANCOUVER, British Columbia, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Willow Biosciences Inc. ("Willow" or the "Company") (TSX: WLLW; OTCQX: CANSF) is pleased to announce that it has entered into an agreement with Eight Capital and BMO Capital Markets, to act as co-lead underwriters, on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 12,122,000 common shares of the Company (the "Common Shares") at a price of $1.65 per Common Share (the "Offering Price") for gross proceeds of $20.0 million (the “Offering”).
The Company has additionally granted the Underwriters an over-allotment option exercisable in whole or in part for a period of 30 days following the closing of the Offering to purchase an additional 15% of the Common Shares issued under the Offering at the Offering Price.
Net proceeds from the Offering are expected to be used to help access new markets for the Company's cannabinoid portfolio, expedite the commercialization of new cannabinoids, access additional manufacturing capacity, working capital and general corporate purposes.
Canadian exchange volume was over 1.4 mil. Approximately 4 X AVG.
VANCOUVER, BC, Jan. 19, 2021 /PRNewswire/ - Willow Biosciences Inc. ("Willow" or the "Company") (TSX: WLLW) (OTCQX: CANSF) is pleased to announce that it has advanced its work on its proprietary yeast strain for production of Tetrahydrocannabinol ("THC"), and plans to commercially launch in the Canadian market.
"We are excited to announce our proprietary THC yeast biosynthesis production process for launch in the Canadian market," said Trevor Peters, Willow's President and Chief Executive Officer. "Our platform technology enables us to produce a variety of cannabinoids and leverage our previous work on CBG. From conversations with prospective customers in Canada, we believe that there is significant demand for consistent, high-purity THC. The flavourless, odorless attributes of our finished product make it suitable as a core ingredient for the cannabis 2.0 market in Canada. There is also strong demand for a more sustainable and environmentally friendly way to produce THC. Our manufacturing process is 50 to 500 times more efficient than indoor cultivation and is the next evolution of sustainable cannabinoid manufacturing."
The Company's Canadian based research and development group has developed a proprietary yeast strain and process for the production of THC and is working toward a pilot scale run later this year. While there is already a well-established market for THC in Canada, the Company believes there is significant demand from consumer product manufacturers looking for a consistent, high-purity, odorless, flavourless THC ingredient like Willow's for the 2.0 market, which consists of vapes, edibles, beverages, concentrates and topicals. The THC market for 2.0 products is already a multi-billion-dollar, multi-ton addressable market for Willow to sell into. The Company has identified a development partner for product isolation, purification and scale up to pilot and is in talks with several manufacturing companies in Canada to serve the adult-use market.
Willow will launch its THC into the Canadian adult-use market first due to its highly-regulated, legal and developed status. The Company is carefully watching the developments in the United States surrounding potential legalization and will be ready to react to any positive regulatory changes should they arise.