The share price of Columbia Care Inc (OTC: CCHWF) fell 3.85 percent to $5.0000 on Friday. A total of 832.01K Columbia Care shares were traded, compared with 526.70K Shares on an Average Weekly Basis. As of the pink sheets, there were 342.63M outstanding shares compared to 80.87M float in CCHWF stock. Announcing a private placement of secured convertible notes, CCHWF stock rose.
Was that private placement worth it?
Columbia Care is one of the largest companies to cultivate, manufacture, and provide medical and adult-use cannabis products as well as related services with licenses in the United States and the EU. A total of 122 facilities are currently operated by CCHWF, including 92 dispensaries and 30 cultivation and manufacturing facilities.
In addition to being a pioneer in medical marijuana, CCHWF continues to provide industry-leading products and services. CCHWF launched Cannabist, a retail brand that leverages proprietary technologies to provide a national cannabis dispensary network.
Columbia Care announced last week that it has received commitments from investors for a private placement of worth $74,500,000 to issue 6.00% secured convertible notes due in 2025.
- A syndicate of agents and CCHWF has entered into an agency agreement on June 17, 2021, that will conduct the CCHWF Offering in accordance with their best efforts.
- CCHWF’s Offering was led by Canaccord Genuity, with ATB Capital Markets as co-lead agent.
- Unless converted, redeemed or repurchased earlier, the Notes will be senior secured obligations of CCHWF and will accrue interest semi-annually in arrears.
- There will be 154 CCHWF common shares converted to $1,000 of principal amount of Notes.
- In other words, that will be the equivalent of approximately US$6.49 per Common Share of CCHWF.
- There may be adjustments involved in the conversion.
- The conversion price of the Notes represents a premium of approximately 25% over the closing price of the Common Shares on the NEO Exchange on June 17, 2021.
- It is anticipated by CCHWF that the Offering will close on or about June 29, 2021.
- In order for the deal to close, all formal documentation and regulatory approvals must be complete, including Canadian Securities Exchange and NEO Exchange approval.
Acquisition by CCHWF:
As reported by the company last week, Columbia Care (CCHWF) has agreed to acquire Medicine Man Denver, a vertically integrated cannabis serving Denver metro area since 2009. The acquisition of Medicine Man further consolidates CCHWF’s position as the world’s largest retailer, grower, and manufacturer of cannabis in Colorado.