Cannabis Co. GTEC Raises $18.2M Via Bought Deal Led By Desjardins Capital Markets, Eight Capital

GTEC Holdings Ltd (TSXV:GTEC) (OTCQB:GGTTF) (FRA: 1BUP), doing business as GTEC Cannabis Co., completed a bought deal public offering co-led by Desjardins Capital Markets and Eight Capital, raising C$23 million ($18.2 million).  

Under the offering, the Canadian cannabis company issued 28.75 million units at a price of 80 Canadian cents per unit, for gross proceeds of C$23 million, including the issuance of 3.75 million units pursuant to the full exercise of the over-allotment option by underwriters.

Each unit contains one share and one common share purchase warrant. In turn, each warrant enables the holder to buy one share at a price of C$1.04 until March 30, 2024.

The company said it may speed up the expiry date of the warrants under specified conditions.

What's Next

GTEC expects the warrants to start trading on TSXV on Thursday, April 1, under the ticker symbol “GTEC.WT.”

The company plans to utilize the collected net proceeds to pay its debt, support the growth of its operating capacity, and finance product development and international expansion opportunities.

GTEC owns four Health Canada-licensed operational facilities, selling both medical and recreational cannabis products.

At the time of writing, the company’s shares were trading 5.46% lower at 59 cents per share.