Staff
Cannabis companies were getting their houses in order at the start of summer.
Red, White & Bloom
Red White & Bloom Brands Inc. (OTC: RWBYF) closed on a deal raising approximately $36.8 million of new cash and retired $7.7 million of debt. RWB closed on a private placement of 8,445,426 units at a price of C$1.15 per Unit for gross proceeds of C$9,712,239 (or USD $7,769,792). In addition to the statutory 4-month hold, the investors have agreed to a 12-month lock-up of their shares. In addition, RWB completed a private placement to an arm’s length purchaser of a principal amount $6,500,000 unsecured debenture.
“As evidenced by today’s announcement, we continue to demonstrate our ability to access the needed expansion and working capital, in the least dilutive possible manner to our shareholders, to execute on our strategy. With the previously announced pre-qualification in the State of Michigan and this cash injection, we will now move aggressively towards taking control of our investment in Michigan in which the immediate growth strategy includes rebranding our dispensaries under the High Times banner and preparing for the expansion of cultivation facilities so that we can hit the ground running upon final inspection,” said Brad Rogers, CEO and chairman of RWB, adding: “We also would like to welcome our new strategic investors in Florida. This group of investors have significant design/build capabilities in the State of Florida and will be a welcome addition as we embark on an aggressive expansion in that state.”
On June 4, 2021, RWB’s wholly-owned subsidiary, RWB Florida LLC entered into agreements for an aggregate capital raise of $30,234,224. The raise includes an investment of US $11,337,834 from certain strategic investors directly into RWB Florida. The investors have also advanced an aggregate of $18,896,390 in subordinated debt to RWB Florida at an 8% interest rate due in 36 months.
22nd Century Group
22nd Century Group, Inc. (NYSE American: XXII) entered into a definitive agreement with one institutional investor for the sale of 10 million shares of its common stock at a purchase price of $4.00 per share in a registered direct offering for gross proceeds for $40 million. The offering is expected to close on or about June 9, 2021. “As a result of this important straight common equity financing with one of our long-term institutional investors, 22nd Century will be able to accelerate the Company’s ongoing strategic objectives across all of our plant franchises,” announced James A. Mish, chief executive officer of 22nd Century Group.
