Nova Cannabis Ups Credit Facility With Sundial To $15M, Files Base Shelf Prospectus

Nova Cannabis Inc. NVACF NOVC has filed a preliminary short-form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada.

The base shelf prospectus will, when made final, allow Nova and certain of its security holders to qualify the distribution by way of prospectus in Canada of up to $35 million of common shares, subscription receipts, warrants, debt securities, units or any combination thereof, during the 25month period that the base shelf prospectus is effective. The base shelf prospectus is intended to provide Nova with financing flexibility and additional options for quicker access to equity and/or debt markets as it continues to pursue its strategic plan.

The specific terms of any offering of securities under the base shelf prospectus will be established in a prospectus supplement, which will be filed with the applicable securities commissions and similar regulatory authorities in connection with any such offering. The net proceeds from the sale of any securities issued under the base shelf prospectus could have a wide range of uses including to finance future growth opportunities including acquisitions and investments, to finance capital expenditures, to reduce outstanding indebtedness, for working capital purposes or for general corporate purposes. There is no certainty that any securities will be offered or sold under the base shelf prospectus within the 25-month period that it is effective.

Additionally, Sundial Growers Inc. SNDL has agreed to increase the total principal amount available to Nova Cannabis Stores Limited Partnership, a wholly-owned subsidiary of Nova, under the uncommitted revolving credit facility with Sundial from $10 million to $15 million. As of June 16, Nova has drawn on the credit facility in an aggregate principal amount of $7.5 million.

"The additional access to capital provides Nova with the opportunity to continue to execute its disruptive and market leading strategy in the Canadian cannabis retail industry," stated Marcie Kiziak, CEO of Nova.

Photo by Mackenzie Marco on Unsplash

Related News

Nova Cannabis Q1 Sales Grow 171% YoY, Says Sundial Can Help It Extend Across Alberta & Ontario

Buy The Dip Opportunities For Cannabis? Cannabis Daily Podcast

Nova Cannabis Reports 176% YoY Revenue Increase In Q4, Gross Profit Improvement

Posted In: Marcie KiziakNova Cannabis Stores Limited PartnershipCannabisNewsPenny StocksSmall CapMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.