Before the market closed yesterday, shares of Emblem Corp. (EMC.V) (EMMBF) were halted at the request of the company.
The halt was due to the announcement of an engagement letter with PI Financial on behalf of a syndicate of underwriters that includes Canaccord Genuity and GMP Securities.
The syndicate agreed to purchase 2,754,821 special warrants at a price of $3.63 for $10 million in aggregate gross proceeds and the offering is expected to close on January 26th. Emblem also granted the underwriters an option to purchase up to an additional 15% of special warrants.
Terms of the Raise
The holders will receive one unit for each special warrant held. Each unit is comprised of one common share and one-half of one common share purchase warrant. Each warrant allows the holder to purchase one share at $4.75 for a period of 36 months from the closing date.
The warrants are subject to an accelerated expiry date if the volume weighted average trading price is greater than or equal to $7 over a period of 10 consecutive trading days.
Use of Proceeds
Emblem intends to use the proceeds to fund the planned expansion of its facility and for general corporate purposes. The company plans to build a 2,500 square-foot extraction and formulation development laboratory on its existing property.
Emblem also hired a team of scientists to focus exclusively on the development and manufacture of advanced dosage forms of cannabinoid medication. With this capital, Emblem will be able to bring several pharmaceutical formulations to market in a much shorter period of time.
In July, Emblem purchased state-of-the-art oil extraction equipment and the company has invested more than $1 million into this division. Demand for cannabis oils, especially high CBD oil, continues to increase and this is an area we expect to see Emblem capitalize on after Health Canada issued the company a cannabis oils license in December.
Increased Institutional Focus
Since inception, Emblem has been dedicated to its existing shareholder base and 92% of all funds raised have been from retail investors.
Emblem was one of the most highly anticipated and most successful initial public offerings in 2016 and institutional investors have taken notice of this. These firms want to help Emblem advance its business plan, specifically in regard to its pharmaceutical division.
Emblem’s pharmaceutical division is led by one of the top pharmaceutical executives in the world, John Stewart. Stewart has over 30 years experience developing and commercializing pharmaceutical products. He has launched 11 new products, including OxyContin, and was the worldwide President and CEO of Purdue Pharma, the largest privately held pharmaceutical company in the world.
In the second quarter of 2017, Stewart plans to lead the launch of cannabinoid-based medications in customary pharmaceutical dosage forms such as liquids, gel caps, oral sprays, and inhalers.
Interested Investors Need to Act Fast
Although this offering is primarily for financial institutions and will most likely be significantly over-subscribed, Emblem has made a limited number of units available to retail investors through a Presidents list.
If you are interested in participating in this offering, please contact us as soon as possible and we will connect you to the Emblem team or email email@example.com
Important Investor Disclosures
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