CubicFarm Systems announced today the closing of its previously announced bought deal equity offering of common shares of the company. The net proceeds from the offering of approximately C$23.8 million will be used to support CubicFarms’ continued global growth, research, and development efforts to optimize machine yields, automation, and functionality, expand addressable crop varieties, and for working capital and other general corporate purposes.
Pursuant to the offering, the company issued a total of 18,740,742 common shares at a price of C$1.35 per common share for gross proceeds to the company of C$25,300,001, which includes the exercise, in full, by the underwriters of the over-allotment option granted by the company to purchase an additional 2,444,445 common shares at a price of C$1.35 per common share.
“We are thrilled by the overwhelming support by our global institutional shareholders, like Handelsbanken, and their confidence in our vision,” said Dave Dinesen, Chief Executive Officer, CubicFarms. “The strong demand for this bought deal financing allowed us to upsize and fully allocate the over-allotment option with the closing of $25.3 million. This financing allows us to fully capitalize on our accelerating sale pipeline growth and market-leading R&D program.”
CubicFarms completes previously announced debt reduction
CubicFarms also announced that further to its news release dated May 3, 2021, the company has completed its previously announced issuance to Business Development Bank of Canada of 128,205 common shares of the company at a deemed price of $1.56 per common share.
“We’re pleased to work with our long-term lending partner on reducing the debt associated with our C$2.5 million growth capital loan with more favorable terms for the Company,” said Dave Dinesen, CEO, CubicFarms. “This demonstrates continued confidence in our ongoing development and the growth of the Company.”
CubicFarms approves grant of options
The Company also announced today that its board of directors has approved the grant of 700,000 stock options to certain directors and officers of the company pursuant to the company’s stock option plan. The options have an exercise price of $1.47 per share, vest as to one-third n each of 12, 24, and 36 months from the date of grant, and have a 5-year term. The grant of the options is subject to the approval of the TSX Venture Exchange.