Photographer: Matthew Staver/Bloomberg
Pot Grower Green Organic Raises C$100 Million in IPOBy
Equity raise comes in at the top end of the expected range
Green Organic Dutchman sells shares at C$3.65 a piece
Medical marijuana grower Green Organic Dutchman Holdings Ltd. raised C$100 million ($78 million) in its initial public offering, according to a person familiar with the matter.
The raise by the Mississauga, Ontario-based pot producer came in at the high end of the previously disclosed range of C$75 million to C$100 million. The company priced its shares at C$3.65 apiece and is expected to begin trading next week in Toronto.
The sale was several times oversubscribed and the over-allotment is also expected to exercised, bringing total proceeds to about C$115 million, said the person, who asked not to be identified because the matter is private.
A spokesman for the company couldn’t be reached for comment.
The IPO follows the January listing by pot producer MedReleaf Corp., which fell 22 percent on its first day of trading. That was the largest decline in 16 years for a Canadian IPO larger than C$100 million.
Green Organic’s IPO was led by Canaccord Genuity Corp. and PI Financial Corp. The company intends to use the proceeds from the offering to fund its ongoing operations, according to a a regulatory filing. It said that will include completing its facilities in Hamilton, Ontario, and Salaberry-de-Valleyfield, Quebec, as well as funding various licensing and approvals, it said.