Aleafia Health Cannabis Co To Raise Up To $30M Through ATM Program
The Toronto-based company is looking to sell its common shares to the public from time to time, at the prevailing market price when issued on the Toronto Stock Exchange.
Cantor Fitzgerald Canada Corporation was named sole agent.
The sale of the company’s common shares through the ATM program is effective until June 20, 2023.
Aleafia said it will utilize the proceeds to fund growth opportunities and working capital initiatives.
The company already raised some $22.7 million earlier this year via the bought deal offering of its 27.39 million units at 83 cents per unit.
The move comes on the heels of the company’s latest earnings report which revealed a 51% year-over-year revenue drop to $7.07 million in the first quarter of 2021 and an 83% year-over-year spike in net loss, which totaled $11.25 million.
Aleafia’s 2021 Highlights
Over the past few months, Aleafia has been strengthening its presence in Canada as well as internationally.
The company kicked off 2021 by announcing the expansion of its global distribution network through a three-year deal with Apipharm Veletrgovina d.o.o. It agreed to supply the Europe-based pharmaceutical producer and distributor with dried cannabis flower.
To wrap up January, Aleafia teamed up with trade union Unifor to “support union members, retirees and their eligible dependents who receive medical cannabis insurance coverage through Unifor’s collective bargaining agreements.”
The company opted to support union members and their families via its network of medical cannabis clinics, products, and scheduled same-day delivery, Aleafia CEO Geoffrey Benic explained earlier.
In April, Aleafia introduced Divvy, a new everyday cannabis brand, and part of its new house of brands, Sunday Market. The brand portfolio consists of five dried flower and pre-roll SKUs.