Transcanna Holdings Inc (TCAN)

[MontereyBud]

TransCanna (TCAN) Rolls Out Private Placement to Fund Growth

Last week, TransCanna announced a $10 million brokered private placement, whereby Haywood Securities will act as lead agent on behalf of a syndicate of agents to sell up to 5,000,000 units at $2.00 each.

According to Technical 420, "each unit will be comprised of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share at a price of $3.00 for a period of 36 months from the date of closing of the offering."

Tech 420 notes that TransCanna intends on using "the net proceeds to partially fund the previously announced acquisition of a 196,000 sq. ft. cannabis facility and for working capital and general corporate purposes. The company still expects to look for a commercial lending facility to secure the full purchase price for the facility and the completion of the offering is conditional upon the company being able to complete the acquisition."

Under the agreement, TCAN will acquire 6.5 acres of land, an asset package that includes an existing 196,000 sq. ft. facility, and cannabis packaging and processing equipment for $15 million in cash.