Florida cannabis firm to offer debenture units

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The units will include a senior note and subordinate voting shares

Trulieve Cannabis, a Florida-based cannabis company, is ready to launch a previously announced sale of its debenture units. The initiative could potentially raise substantial funds for the company, which would allow it to cover capital expenditures, general corporate expenses and acquisitions. According to an announcement, Canaccord Genuity would act as the exclusive agent for the offering.

A principal amount of $60 million 9.75% senior secured notes that mature in 2024 will be at the center of the endeavor. Another 1,540 subordinate voting share purchase warrants will also be offered, and each unit will contain one Note and 26 Warrants. They can be exercisable until June 18, 2022, in order to purchase a subordinate voting share at around $13.75 a piece, subject to certain criteria.

An aggregate of 60,000 units will be offered at $980 each, plus accrued but unpaid interest starting from June 18 of this year. The price, however, excludes the date of closing of the offering, which will be $37.65 per $1,000 in principal purchased. As a result, Trulieve expects to receive just over $60 million if all units are sold.

The offering will close on or around November 7 and is subject to “number of customary conditions including, but not limited to, receipt of all necessary regulatory approval and stock exchange approval, including approval of the CSE [Canadian Securities Exchange],” according to the company announcement.

Trulieve is a seed-to-sale firm that bills itself as the first and biggest fully licensed medical cannabis company in the Sunshine State. The vertically-integrated company cultivates and produces all of its products in-house, then distributes these to its own branded stores, as well as through delivery to patients. The company also has operations in Massachusetts, Connecticut and California.