New York Weed Giant Cannabist To Complete Nearly $26M Private Placement Offering Of Convertible Debentures
Portfolio Pulse from Jelena Martinovic
Cannabist Company Holdings Inc. (CBSTF) plans to complete a nearly $26M private placement of convertible debentures due 2027, with $17.5M in binding commitments and an additional $2M expected. The funds will be used to repay debt, for working capital, and general corporate purposes. The offering includes converting previous notes and is set to close by March 19, 2024, pending regulatory approvals. Cannabist's Q4 financials show a 76% decrease in net loss to $72.5M, with 2023 revenue steady at $511M. CBSTF shares fell 3.2349% to $0.2393.
March 15, 2024 | 3:49 pm
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Cannabist Company Holdings Inc. is raising nearly $26M through convertible debentures, aiming to repay debt and support growth. Q4 net loss decreased by 76% to $72.5M, with 2023 revenue at $511M. Shares dropped 3.2349% to $0.2393.
The announcement of a significant private placement offering indicates a strategic move to strengthen the company's financial position by repaying debt and supporting growth. However, the immediate market reaction was negative, as evidenced by a 3.2349% drop in share price. This could be due to investor concerns about dilution or the financial health of the company. The decrease in net loss and stable revenue are positive signs, but the short-term impact on the stock price is likely negative due to the immediate market reaction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100