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MediPharm Labs Gets C$60M By Selling Stock

May 28, 2019 5:17 pm
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MediPharm Labs Gets C$60M By Selling Stock

MediPharm Labs Corp. (TSXV:LABS) (OTC:MEDIF), a company that specializes in research-driven cannabis extraction and cannabinoid isolation, on Tuesday announced an agreement with Bank of Nova Scotia (NYSE:BNS) on behalf of a syndicate of underwriters that will purchase 10.815 million common shares of the company on a bought deal basis, at a price of $5.55 per share. Gross proceeds will amount to C$60 million.

Additional underwriters include GMP Securities and BMO Capital Markets.

The agreement also stipulates the granting of an option to purchase 1,622,250 additional shares over the 30 days following the closing of this offering, expected for June 17.

Why It's Important

MediPharm said in a press release “plans to use the net proceeds from the Offering to fund the Company’s ongoing capital expenditures at its Canadian and Australian facilities, for domestic and international expansions, research and development and general corporate purposes.”

Management was not able to provide any additional commentary as the company is in a quiet period.

Last week, MediPharm Labs announced its subsidiary MediPharm Labs Australia Pty. Ltd. received its cannabis manufacturing license from the Australian Office of Drug Control.

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