Vertically integrated California cannabis company Lowell Farms announced a non-brokered equity private placement worth $18 million— 18 million units of Lowell Farms for $1 each. Each unit equals one subordinate voting share and one-half of a share purchase warrant. “Subject to adjustment in certain circumstances,” each warrant can be utilized to acquire one share for $1.40 until Aug. 30, 2024.
“This financing allows the Lowell Smokes brand, one of the strongest cannabis brands in the country, to expand geographically and increase scale in its home state of California,” Lowell Farms Chair George Allen said in a statement.
“Proceeds from the offering are contemplated to be used for working capital purposes, automation investments, and expansion into new markets,” Salinas-based Lowell Farms said in a news release.
Company insiders purchased 2.9 million units in the offering.