2021 is finally here, and though it seems like last year's chaos is unlikely to subside anytime soon, it remains a ripe market for investors and companies seeking capital. For this weeks' roundup of interesting private placements, we bring you deals from a Canadian cannabis producer, a junior silver mining company, and an IT darling steeply on the rise.
1. Curaleaf Holdings Inc. (CSE: CURA)
- Gross Proceeds: $275.55 million
- Sector: Cannabis
- Units issued: 16.5 million
- Type: Subordinate voting shares
- Price: $16.70
- Warrants: None
- Agents: Canaccord Genuity
- Use of Proceeds: Working capital
- Press release
Cannabis giant Curaleaf Holdings Inc. (CSE: CURA) announced the pricing of a $275.55 million overnight marketed offering on Thursday. The company plans to issue 16.5 million subordinate voting shares for $16.70 each, a 68-cent discount to its closing price on Friday afternoon. The deal is underwritten by Canaccord Genuity, and Curaleaf says it will be used for working capital and general corporate purposes.
Despite 2020 volatility in the cannabis market, shares of Curaleaf have been steadily on the rise for several months, climbing 105.2% since this date last year amid a slew of new product rollouts, acquisitions, and solid quarterly earnings.
2. Bear Creek Mining Corp. (TSX-V: BCM)
- Gross Proceeds: $30 million (bought deal)
- Sector: Precious metals
- Units issued: 10 million
- Type: Common shares
- Price: $3.00
- Warrants: None
- Agents: Stifel GMP
- Use of Proceeds: Ongoing development
- Press release
Junior silver miners Bear Creek Mining Corp. (TSX-V: BCM) announced a $30 million bought deal led by Stifel GMP on Wednesday. The company plans to issue 10 million common shares at $3.00 each, a 15-cent premium to its current share price. The underwriters have been granted an over-allotment option to purchase up to an additional 15% for 30 days following its closing date, expected on Jan. 15.
We haven't seen much substantive news from Bear Creek since the company released an updated feasibility study back in November 2019 for a potential mine at its Corani project in Peru, estimating a net-present value of US$531 million. Shares of the company have remained more or less flat since recovering from a steep drop at the beginning of COVID-19 panic last March. Since announcing the bought deal, the stock has dropped 48 cents, closing at $2.85 per share on Friday afternoon.
3. Converge Technology Solutions Corp. (TSX-V: CTS)
- Gross Proceeds: $75.2 million
- Sector: IT
- Units issued: 15.5 million
- Type: Common shares
- Price: $4.85
- Warrants: None
- Agents: Canaccord Genuity, Echelon Wealth Partners
- Use of Proceeds: Acquisitions and working capital
- Press release
Converge Technology Solutions Corp. (TSX-V: CTS), an IT provider that has been on a tremendous run over the past year, arranged a $50 million bought deal on Tuesday and upsized it to $75.2 million on Wednesday.
The company plans to issue 15.5 million common shares at $4.85 each, a 60-cent discount to its share price on Friday afternoon. The deal is underwritten by Canaccord Genuity and Echelon Wealth Partners, and is expected to close on Jan. 15.
Shares of Converge, which acquires IT providers and incorporates them into its ever-growing network, have jumped over 303% over the past year, as the company steadily moves down its acquisitions pipeline with strong reported revenue. Back in December, we wrote about a Converge financing from July that generated 141% returns for investors of the deal. No doubt the institutions involved in this latest financing are hoping for that lightning to strike again.
