Aphria Inc Com NPV (OTCMKTS:APHQF) has announced the completion of its equity fundraiser on a bought deal term. The company hinted the demand for its shares looked strong as underwriters fully exercised their option to purchase additional shares to cover overallotment.
As such, Aphria ended up selling 10.06 million shares of its common stock. A share was sold at $4, fetching $40.3 million in gross proceeds.
A syndicated of underwriters were involved in the equity fundraiser. They included Mackie Research Capital Corporation, Cormark Securities, Sprott Private Wealth and Haywood Securities.
Aphria intends to channel net proceeds from the fundraiser into expansion projects. The company already has multiple expansion programs on course and it hopes to initiate more now that it has financing. The underway expansion projects include Part 2 Expansion and Part 3 Expansion. Planning and designing is in progress for Part 4 Expansion project.
Aphria has not disclosed how much it expects Part 4 Expansion project will cost, but it expected to project to commence in its F3Q17. The consent of the board is needed before the project can commence.
Cash held in bank account
The net proceeds that Aphria has raised from the equity offering will be held in the company’s bank account until the board approves the project on which the funds can be spent. However, the company could also invest the cash in ways the board deems fit.
New Age unveils new production facility
As Aphria moves toward expanding its capacity, New Age Farm Inc Com NPV (OTCMKTS:NWGFF) is also enlarging its production base. The company recently unveiled a state-of-the-art marijuana production facility in Washington where it already owns complex called Green Campus.
New Age Farm expects harvest from the newly commission grower facility to come in three months.
Aphria and New Age Farm have stepped up their capacity expansion to take advantage of the expanding legal cannabis market.