DionyMed Brands Inc (OTCMKTS:DYMEF) announced a month ago that it secured an investment deal with Alumina Partners, through which it will receive CAD$32 million to expand its cannabis portfolio.

DionyMed will receive the CAD$32 million over a 2-year duration and this will allow the company to expand its cannabis products into new markets where it anticipates significant returns. The investment agreement dictates that DionyMed will sell some of its shares through a private placement basis and they will be sold in tranches.

Each unit will comprise of one of a subordinate voting share, as well as half a unit of a Voting Share purchase warrant. Each warrant will be sold at half the value of the Subordinate Voting Share market price on the Canadian Securities Exchange. The company will accelerate the warrants expiry date if the Subordinate Voting Shares equate to or surpass 100% of the warrant exercise price of their 10-day volume weight average price.

The total number of Subordinate Voting Shares that Alumina owned at the time of the purchase surpassed 9.99% of the outstanding Subordinate Voting Shares of DionyMed. The agreement requires that five business days should pass before the unit issuance comes to a close. Additionally, the pricing will feature a 15% to 20% discount that will be based on the market price.

“This Agreement provides DionyMed with additional capital to accelerate our cannabis brands distribution and delivery platform,” stated DionyMed CEO Edward Fields.

DionyMed’s current efforts are aimed at getting a better foothold of the market

The CEO also noted that the company is on a mission to expand its Direct-To-Consumer footprint in California by venturing into new markets such as Los Angeles and Sacramento. The company’s goal is to make cannabis available across the largest market.

Alumina’s managing member Adi Nahmani noted that his company is excited to support DionyMed through its aggressive push towards expanding its brands. He also believes that DionyMed has the operational know-how and competitive advantages that can put it ahead of the competition. The cannabis industry is rapidly growing and this means that companies are currently trying to get an edge that will allow them to leverage the most out of the industry.