Canadian Cannabis Producer Mettrum Raises $5mm

Mettrum Health Corp.- Mettrum™ set for expansive growth

 

Mettrum (TSXV:MT) announced this morning that it has raised at least $5mm through a “bought” offering led by underwriter Cormark Securities, which has agreed to purchase 3.334mm shares for resale at $1.50. The underwriters have the option to buy an additional 500,100 shares within 30 days of the closing, which is expected to occur on or about May 10th.

Mettrum indicated that the purpose of the financing is for “plant upgrades, including additional growing and oil extraction capacity at existing facilities, other growth opportunities and general corporate purposes”.  In an exclusive interview last week with 420 Investor, CEO Michael Haines had suggested that the company doesn’t need to raise capital but that it might do so to accelerate its buildout of its unfinished capacity or to expand its cannabis oils efforts, which included the possibility of adding a custom-made industrial extraction machine.

Mettrum last raised capital in 2014 before going public.  This offering, which follows capital raises over the past six months by Aphria (TSXV:APH), Canopy Growth (TSXV:CGC), and OrganiGram (TSXV:OGI),  is priced near the 10-day moving average, a 12% discount roughly to the $1.70 close on Friday:

Mettrum 041516

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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