After filing its preliminary prospectus for its pending IPO last month, MedReleaf revised it on May 9th, sharing a lot more information. The Canadian cannabis deal, underwritten by GMP Securities as book-runner and co-lead underwriter with Clarus Securities as a co-lead underwriter and additional underwriters including Canaccord Genuity, Cowen and Company Eight Capital and PI Financial, is expected to price at $9.50-10.50, implying a market capitalization of about $900mm. MedReleaf sold private placement common shares as recently as November at $2.96.
The company, which expects the stock to trade on the Toronto Stock Exchange with the symbol “LEAF”, intends to raise $80mm, with selling shareholders cashing out $20mm in proceeds. MedReleaf intends to use $40mm to build out its second facility in Bradford, Ontario, $15mm to expand its current facility in Markham, Ontario, $2mm to fund clinical research and product development and the balance for working capital and general corporate purposes. The IPO is expected to price the week of May 22nd.
Download the MedReleaf Amended and Restated Preliminary Prospectus
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