On April 13, 2018, CannaRoyalty Corp. closed a bought deal offering of 3,750,000 units at a price of $4.00 per unit for aggregate gross proceeds of $15 million. The offering was led by Canaccord Genuity Corp. and included a syndicate of underwriters, including Beacon Securities Limited, Sprott Private Wealth LP, Mackie Research Capital, INFOR Financial Inc. and AltaCorp Capital Inc. Following closing, the underwriters exercised their over-allotment option in full and on April 18, 2018, CannaRoyalty issued an additional 562,500 units at a price of $4.00 per unit for additional gross proceeds of $2.25 million. Following closing of the over-allotment option, CannaRoyalty raised aggregate gross proceeds of $17.25 million under the offering.
Each unit consisted of one common share and one-half of one common share purchase warrant of CannaRoyalty. Each warrant is exercisable to acquire one common share until April 13, 2021 at an exercise price of $5.50 per common share, subject to adjustment in certain events.
Cassels acted for CannaRoyalty with a deal team that included Cam Mingay, Jay King, Jackson Phillips and Stefanie Sebanc (Securities and Cannabis) and Chris Norton and Tera Li (Tax).