Marijuana multistate operator Harvest Health & Recreation raised $34.5 million (46 million Canadian dollars) through a public offering of subordinate stock, the company said Wednesday.
The Arizona-based marijuana company said in a previous news release that it will use the proceeds for working capital and general corporate purposes.
The offering was increased from around $23 million (CA$31 million), indicating strong demand.
Each unit was sold for $1.70, which included a subordinate share of stock and one-half a warrant, according to a news release.
Each warrant can be converted into a share of subordinate stock at an exercise price of $2.28 within the next 30 months.
Harvest is trading at around $1.50 a share on the U.S. over-the-counter markets under the ticker symbol HRVSF. The company also trades on the Canadian Securities Exchange as HARV.
Eight Capital and Canaccord Genuity were co-lead underwriters of the offering in a sales syndicate that included ATB Capital Markets and Beacon Securities.
The completion of the capital raise comes as Arizona voters are deciding whether to legalize a commercial adult-use marijuana market.
Harvest is a leading medical cannabis operator in Arizona with 15 dispensaries.
If the adult-use initiative is approved, existing MMJ operators will get priority status in Arizona’s new recreational market.
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