Staff
It’s time for Daily Hit for cannabis financial news for September 26, 2018.
On The Site
Namaste Technologies Inc.
Namaste Technologies Inc. (NXTTF) entered into a letter of engagement with Eight Capital to purchase, as co-lead underwriter and joint bookrunner with Canaccord Genuity Corp., 15,000,000 units of Namaste, on a “bought deal” basis pursuant to a filing of a short form prospectus, subject to all required regulatory approvals, at a price per unit of $3.00 for gross proceeds of $45,000,000. The deal is expected to close on or about October 17. Namaste plans on using the net proceeds to fund inventory and for working capital and general purpose.
The Flowr Corporation
The Flowr Corporation will begin trading on the TSX Venture Exchange under the symbol FLWR at market open today, September 26, 2018. This follows the recent completion by Flowr of both an oversubscribed $C36 million capital raise and a reverse takeover of a capital pool company previously listed on the Exchange. Flowr is an emerging Canadian cannabis leader founded by MedReleaf co-founder Tom Flow and a team of industry pioneers, successful start-up executives, and top industry scientists. Flow is recognized for his expertise as a master grower who made his name with the quality products produced by MedReleaf, which was acquired by Aurora Cannabis.
Loyalty Programs
Recent data provided by SpringBig is revealing the impact of loyalty programs on cannabis retail store customer traffic. Data offered by three cannabis retailers by SpringBig shows insights into the best strategies that have customers signing up for loyalty programs, and actually ensuring they’re coming back.
Uncle Ikes, a Seattle-based retail chain has found that loyalty customers visit 2.4 times more than non-loyalty customers and spend on average $194 in a 6-month period on cannabis purchases. In addition, they spend $25 more per transaction than non-loyalty members.
In Other News
Green Thumb Industries Inc.
Green Thumb Industries Inc. (CSE: GTII) announced that, due to strong demand, it has agreed with a syndicate of underwriters led by GMP Securities L.P. to increase the size of its previously announced $65,000,000 bought deal offering. The underwriters agreed to purchase 4,420,000 subordinate voting shares at a price of $20.00 per offered for aggregate gross proceeds of $88,400,000.
In addition to that, the company statement said that it has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 663,000 Offered Securities at the Offering Price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, an additional $13,260,000 in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be $101,660,000.
Solis Tek Inc.
Solis Tek Inc. (SLTK) announced a name and ticker symbol change, its final step in the rebranding of its corporate identity. The new name is Generation Alpha, Inc. and the new ticker symbol is GNAL. The name and symbol change will be effective with the start of trading on Thursday, September 27, 2018.
Generation Alpha reflects management’s strategy to leverage business opportunities in legalized cannabis jurisdictions, such as cultivation, processing, and retail facilities. The Company will continue to aggressively develop and innovate its lighting division as Solis Tek Digital Lighting and its agricultural products division as Zelda Horticulture.
