Photo courtesy of Lowell Herb Co.
One of the US’s most prominent cannabis companies, Lowell Farms, recently announced the conclusion of a non-brokered private placement of $18 million.
In a news release on Tuesday, Salinas-based Lowell Farms had this to say, “Proceeds from the offering are contemplated to be used for working capital purposes, automation investments, and expansion into new markets.”
The offering holds 18 million units of Lowell Farms for $1.00 each, with each unit comprising one subordinate voting share and one-half of a share purchase warrant. Every warrant can be exercised to acquire one share for $1.40 until August 30th, 2024, “subject to adjustment in certain circumstances.” Company insiders acquired 2.9 million units in the contribution.
Lowell Farms Chair George Allen went further into detail regarding how the offering will support the cannabis company, “This financing allows the Lowell Smokes brand, one of the strongest cannabis brands in the country, to expand geographically and increase scale in its home state of California.”
In February of this year, Indus Holdings acquired Lowell Farms in an agreement worth $39 million. Shares of Lowell Farms currently trade as LOWL on the Canadian Securities Exchange and as LOWLF on over-the-counter markets.
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