Cansortium Announces Closing of Private $17 Million Equity Financing

3.9 min readPublished On: April 9th, 2021By
MIAMI – Cansortium Inc. (CSE: TIUM.U), (OTCQB: CNTMF), today announced the second and final closing of its previously announced private placement of units at a purchase price of US$0.70 per Unit. The second closing was approximately US$5.2 million, bringing the total Private Placement investment to US$17.1 million.  Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each Warrant will entitle the holder thereof to purchase one common share of the Company for a period of 24 months following the closing date at an exercise price per Warrant Share equal to US$0.90.
Proceeds from the Private Placement will provide the necessary capital to accelerate the Company’s growth initiatives in both Florida and Michigan. In Florida, where the Company currently operates two cultivation facilities and 24 retail dispensaries (with 3 more to be opened shortly), the proceeds from the Private Placement will be used to: (i) immediately complete Phase 2 of the Company’s new Sweetwater cultivation facility, more than doubling that facility’s annual production capacity from 3,000 lbs. to more than 6,000 lbs. of high quality flower, (ii) construct a new building at the Sweetwater facility to more efficiently trim, process and package the increased flower supply; and (iii) create four additional grow rooms in the Tampa cultivation facility to increase the supply of flower and biomass by approximately 2,400 lbs. annually and to improve operating efficiencies. In addition, proceeds from the Private Placement will help accelerate opening two new dispensaries in Pennsylvania and an additional two in Florida by year-end, thereby increasing the Company’s dispensary footprint to 31 locations. In Michigan, the Company will expand its existing cultivation facility and construct additional support infrastructure to capitalize on the strong demand for recreational cannabis throughout the state.

Canaccord Genuity acted as Financial Advisor to Cansortium on the Private Placement.

No securities regulatory authority has either approved or disapproved of the contents of this news release.  The Shares and Warrants and any underlying securities shall be subject to a four month hold period from the closing date for Canadian investors. The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, these securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Cansortium in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-Looking Information

Certain information in this news release may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates, and projections regarding future events.

Forward-looking information is necessarily based on many opinions, assumptions, and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

(This information is primarily sourced from Cansortium.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here)

About the Author: News Team

Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

Share This Story, Choose Your Platform!

Latest News

  • Industrial Hemp Market

Global Industrial Hemp Market Report 2022

December 6th, 2022|

Dublin - According to the publisher, the global industrial hemp market size is estimated to be valued at USD 6.8 billion in 2022 and is projected to reach USD 18.1 billion by 2027, recording a ...