GTEC Holdings has entered into an agreement with Desjardins Capital Markets and Eight Capital, which is purchasing more than 18 million units of the Kelowna cannabis company on a bought deal basis.
The deal will result in gross proceeds of $15 million for GTEC. A bought deal is when the underwriter, in this case Desjardins and Eight Capital, sells the units.
Each unit will be comprised of one common share and one common share purchase warrant at an exercise price of $1.04 for 36 months following the offering’s closing.
GTEC intends to use the net proceeds from the offering to repay indebtedness, fund expansion of the company’s operating capacity, fund international expansion opportunities, and for working capital and general corporate purposes.
The offering is expected to close on March 30.
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