Note: Shortly after publication, each company boosted the size of its offering by $5mm, with Canopy Growth’s deal increasing to $30mm and Mettrum’s to $15m, for a total of $45mm.
Canadian MMPR licensed producers (LPs) have announced equity capital raises now of almost $200mm since the election of Justin Trudeau last October. This morning, Canopy Growth (TSX: CGC) (OTC: TWMJF) and Mettrum (TSXV: MT) (OTC: MQTRF) announced “bought deals” totaling $35mm, each with the potential to be expanded further by the exercise of the underwriters’ option. Here is a list of all of the LP transactions since October, with those not yet closed shaded:
Canopy Growth announced a $25mm deal. GMP Securities and Dundee Securities will lead a group of underwriters, selling 6,849,315 shares at $3.65, with an option for the underwriters to buy an additional 1,027,397 shares within 30 days of closing, which is expected to be August 24th. The deal pricing is an 11.6% discount to the close of $4.13 on 8/5.
Mettrum announced a $10mm deal. Cormark Securities will lead a group of underwriters, selling 3.774mm shares at $2.65, with an option for the underwriters to buy an additional 566,100 shares within 30 days of closing, which is expected to be August 26th. The capital raised is for plant expansion, including additional growing and oil extraction capacity, as well as marketing and branding initiatives and other growth opportunities. The deal pricing is a 16.4% discount to the close of $3.17 on 8/5.
Both stocks have rallied sharply since June 30th: