Equity Raises:

• On July 17, 2024, Simply Solventless Concentrates (HASH: TSX), A Canadian company engaged in the provision of pure, potent, terpene-rich cannabis products to discerning cannabis consumers, closed a non-brokered private placement of unit for gross proceeds of $2.81M.
• HASH sold 15.4M units at $.18 per unit. Each unit consisted of one common share and ½ of a warrant with a 60% exercise premium and a 2-year term.
• Despite the cost of the warrants, the $.18 net share price was 1% above preannounced price levels.
• The proceeds will fuel the growth of the company’s brands, including Astrolab, Footyhooty, Lamplighter, Roilty, and Zest, and help lower the cost of goods sold through the commissioning of in-house hydrocarbon extraction.
• The transaction implies a market cap and enterprise value of $9.0M and $11.91M, respectively, valuing the company at approximately 1.75x annualized revenues.

Public vs. Private Raises: 

• All three of the week’s capital raisers are public companies and trade in Canada (two on the CSE and one on the TSX). In addition, one trades in the U.S. on OTCQX.

Equity vs. Debt Cap Raises:

• Equity accounted for 1.8% of the week’s capital raise activity.