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.
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