Nextleaf Solutions Ltd (CSE:OILS), a cannabis-extraction-technology company announced Tuesday that it will be conducting a non-brokered private placement of units at a price of C$0.40 per unit to raise up to C$2 million.
Each unit will consist of a share and a warrant exercisable for the acquisition of a share at a price per warrant of $0.70 for a period of 24 months from the closing date provided the shares trade above $1.25 per share for 20 consecutive trading days.
DEEP DIVE: Nextleaf Solutions takes aim at infused beverages and edibles with its patented cannabis extraction technology
The units issued under the financing deal will be subject to a four-month hold period.
NextLeaf, which has a patented process for the commercial scale production of cannabinoid distillate, the precursor to every cannabis-infused product, said it intends to use the proceeds for general working capital.
The British Columbia company’s technology allows for low-quality, dried cannabis biomass to be processed into a high-purity distilled oil.
NextLeaf's timing is apt: with infused beverages and edibles becoming legal in Canada by October 2019, the company has the opportunity to be a front-runner in the extraction space.
Contact Uttara Choudhury at [email protected]