- Cannabis company, Cardiol Therapeutics (TSX:CRDL) has completed its previously announced bought deal offering for gross proceeds of C$17.25 million
- The company issued a total of 6.9 million units at a price of $2.50 each
- Each unit consist of one Class A common share and half of one common share purchase warrant
- The proceeds raised under the offering will be used to fund the commercialisation of Cardiol’s pharmaceutical cannabidiol products, as well as ongoing research and clinical development programs
- Cardiol Therapeutics (CRDL) is up 3.31 per cent and is trading at $2.81 per share at 12:09pm EDT
Cannabis company Cardiol Therapeutics (TSX:CRDL) has completed its previously announced bought deal offering for gross proceeds of C$17.25 million.
The Ontario-based company issued a total of 6.9 million units at a price of $2.50 each. These units consist of one Class A common share in the company, as well as half of one common share purchase warrant.
Each whole purchase warrant will entitle the holder to acquire an additional common share at a price of $3.25, exercisable over a period of 24 months from the date of issuance.
However, should Cardiol Therapeutics’ shares trade at or above a price of $4.50 for a period of ten consecutive trading days, the expiry date of the warrants may be brought forward.
The offering was completed through a syndicate of underwriters, which included Raymond James, AltaCorp and Echelon Wealth Partners, and was led by Canaccord Genuity.
According to today’s announcement, Cardiol Therapeutics will use the proceeds to fund the commercialisation of its pharmaceutical cannabidiol products, as well as its continued research and development programs regarding heart failure.
A portion of the funds will also be used to progress further product developments and for general working capital purposes.
President and CEO of Cardiol Therapeutics, David Elsley said the completion of the financing positions the company to execute its strategy designed to address significant opportunities within the healthcare sector.
“Cardiol is fortunate to have the opportunity to collaborate with leading international researchers to develop new therapies to address inflammation in heart failure and in other cardiovascular abnormalities, and through this work explore the possibility of improving outcomes in high-risk COVID-19 patients.
“We also look forward to the commercial introduction of our lead product through our national supplier agreement with Medical Cannabis by Shoppers, a subsidiary of Shoppers Drug Mart,” he said.
Cardiol Therapeutics (CRDL) is up 3.31 per cent and is trading at $2.81 per share at 12:09pm EDT.