AUCKLAND, NEW ZEALAND: Cannasouth Limited is today opening a non-underwritten $6 million offer to retail investors in New Zealand with right reserved to accept oversubscriptions up to $2 million.
The offer comprises:
- a priority offer, which is only available to clients of CM Partners Limited – the Lead Manager of the Offer;
- an offer to existing Cannasouth shareholders through a Share Purchase Plan (“SPP”); and
- a general offer to retail investors through a general retail offer (“General Retail Offer”).
Investors recorded in Cannasouth’s share register as at 5pm on 15 July 2021 (“Record Date”) with an address in New Zealand can subscribe online for up to NZ$15,000 of new shares in Cannasouth..
The offer price for any Shares subscribed for will be 40 cents per share. The new Shares to be issued will rank equally in all respects with Cannasouth’s existing ordinary shares on issue.
For every three new shares subscribed for, an investor will receive one new option to acquire one ordinary share in CBD (“Option”). The exercise price for each Option is 40 cents, and the term of the Option shall be 24 months from the date of issue of the Options. There is no minimum subscription amount. The Option will not be quoted on the NZX Main Board.
Retail investors may apply for up to NZ$50,000 of new shares per retail investor, at 40 cents per share under the General Retail Offer (“General Retail Offer Shares”). The new General Retail Offer Shares to be issued will rank equally in all respects with Cannasouth’s existing ordinary shares on issue.
For every three new General Retail Offer Shares subscribed for, an investor will receive one new option to acquire one ordinary share in CBD (“Option”). The exercise price for each Option is 40 cents, and the term of the Option will be 24 months from the date of issue of the Options. The Option will not be quoted on the NZX Main Board.
The proceeds will partially fund the acquisition of the interests that it does not already own in each of Cannasouth Cultivation Limited and Midwest Pharmaceutics (NZ) Limited; and provide additional growth capital for Cannasouth,