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New York-based marijuana multistate operator Columbia Care entered into subscription agreements with institutional investors to raise $25 million (33.8 million Canadian dollars) in a private placement.
The agreements include the purchase and sale of 22.2 million units of the company for roughly $1.13 a share (CA$1.52) per share, according to a news release.
Investors will be able to buy $25 million in additional units at the same price.
Columbia Care also entered into a nonbinding agreement with the investors regarding the repurchase by the company of up to $25 million of principal amount of their holdings in the 6% senior secured convertible notes that are due June 2025.
The purchase price would be payable in common shares of the company.
Columbia Care is also in discussions with holders of the company’s 13% senior secured notes due May 2024 to exchange their 2024 notes for the company’s 9.5% senior secured notes due February 2026 on a one-for-one basis.
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