- A
syndicate of underwriters is to purchase 3.8 million units at C$5.27 per
unit
- Sale
terms are an amendment of previously announced agreement to sell 1.9
million units
- Sunniva
is closer to achieving full vertical integration in California with launch
of Sunniva-branded product lines commencing in Q4 2018
Sunniva Inc. (CSE: SNN) (OTCQX: SNNVF), a
vertically-integrated medical cannabis provider, aims to raise C$20 million
through the sale of units of the company to a syndicate of underwriters
spearheaded by Beacon Securities Limited and Canaccord Genuity Corp., according
to a company press release (http://ibn.fm/HVqPi).
Sunniva announced that the syndicate will purchase 3.8
million units priced at C$5.27 per unit, an amendment of the previously
publicized agreement which said that the syndicate was to buy 1.9 million
units. Subject to the approval of the Canadian Securities Exchange, the closing
date of the deal will be October 10. The funds realized from the sale will go
toward working capital, among other corporate expenses.
Sunniva recently released its second quarter results, at
which time the company’s management said that they looked forward to future
revenue opportunities (http://ibn.fm/EQesV).
In a news release, CEO Dr. Anthony Holler said, “We made great progress in Q2
2018 towards our goal of becoming a truly vertically integrated cannabis
company in the U.S. In California, construction progressed at our phase one
325,000 square foot state-of-the-art Sunniva California Campus with completion
targeted by the end of this year and first harvest expected in Q1 2019. Our
extraction facility began generating revenue this quarter. We continue to
secure new contracts and are excited about the future revenue opportunities in
this and other vertical channels that maximize the synergies with our Vapor
Connoisseur device business.”
In the six months up to June 2018, Sunniva’s total revenue
amounted to C$9.6 million, against a net loss of C$11.2 million, compared to a
C$11.7 million loss in the same period last year.
Speaking of the company’s immediate future plans, Dr. Holler
said that its focus in California and the U.S. is to leverage its cultivation
and extraction facilities and aggressively expand upstream distribution and
retail opportunities to achieve full vertical integration from seed to sale,
“which will include a focus on soon launching Sunniva branded product lines in
various product categories including flower, extracted products, vaporizers and
beverages.”
The first half of the year saw Sunniva entering separate
agreements to provide distilled oil products to two leading California brands.
Sunniva’s subsidiary, CP Logistics, has a deal with Farmacy Phactory, a
producer of high-terpene strains of cannabis. CP Logistics will also produce
distilled oil products for Cali Gold.
Sunniva has experienced significant expansion over the last
year, including beginning construction of a new 759,000 square foot facility in
Okanagan Falls, Canada, and opening a new clinic in its Natural Health Services
referral network of cannabis-related clinics.
Dr. Holler continued, “In Canada, we received our
Confirmation of Readiness letter for a license from Health Canada and broke
ground and commenced construction on the 759,000 square foot Sunniva Canada
Campus in Okanagan Falls, British Columbia. Our Natural Health Services’
clinics reported another strong quarter of revenue generation and together with
the future production from the Sunniva Canada Campus, provide a solid
foundation for future Canadian growth opportunities.”
For more information, visit the company’s website at www.sunniva.com
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