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It's a busy time for private placements. This week brought us 19 financings that went free-trading with over 100% returns, coming from virtually every corner of the market.
Here, we pick out four need-to-know financings from the list, including from a newly-massive crypto player, an Israeli robotics company, a plasma tech provider, and a well-known cannabis grower that is finally getting its moment in the sun.
Galaxy Digital Holdings Ltd. (TSX: GLXY) Term Sheet
- Type of financing: Brokered
- Gross proceeds: US$50 million
- Number of units: 19.07 million
- Price per unit: $3.50
- Closing date: 11/12/20
- Yesterday’s closing price (March 19): $27.90
- Gains: 697.14%
- Warrants: One-quarter
- Strike Price: $8.25
- Expiry date: 11/12/22
- Net ROI w/ warrants ($100k investment): $837,500
Company breakdown:
- Financial services and investment company focused on digital assets, cryptocurrency, and blockchain
- Expects to report income of $325 million for Q4 in report on March 30
- Recently started a bitcoin mutual fund
- Provides bitcoins for the Purpose Bitcoin ETF, first-ever cryptocurrency ETF approved in North America
- Has recently taken off in response to frenzy around cryptocurrency and NFTs
A2Z Technologies Canada Corp. (TSX-V: AZ) Term Sheet
- Type of financing: Brokered
- Gross proceeds: $8.3 million
- Number of units: 13.35 million
- Price per unit: $0.63
- Closing date: 11/10/20
- Yesterday’s closing price (March 2): $3.16
- Gains: 400%
- Warrants: Full
- Strike Price: $0.90
- Expiry date: 11/10/25
- Net ROI w/ warrants ($100k investment): $760,317
Company breakdown:
- Based in Israel, specializes in military unmanned robotics, automation, and electronics
- Military and defence arm recently received a $1.5 million contract with the government of Israel to provide service and maintenance for the country's prisons
- Is set to acquire 60% of a "leading engineering and manufacturing corporation for commercial, industrial and transportation industries"
- Recently began the rollout of a smart digital shopping cart product
Pyrogenesis Canada Inc. (TSX-V: PYR)
- Type of financing: Bought deal
- Gross proceeds: $12.08 million
- Number of units: 3.35 million
- Price per unit: $3.60
- Closing date: 11/10/20
- Yesterday’s closing price (March 2): $9.32
- Gains: 158.89%
- Warrants: Half
- Strike Price: $4.50
- Expiry date: 11/10/22
- Net ROI w/ warrants ($100k investment): $225,833
Company breakdown:
- A leader in commercialized plasma technologies, based on Montreal
- Technologies used in the pelletization of iron ore, aluminum dross recovery, waste treatment, and for metal powders used in additive manufacturing
- Recently received a $194,000 grant for a waste recovery contract from Quebec's Ministry of the Economy and Innovation
- Began trading on the Nasdaq on March 11
Organigram Holdings Inc. (TSX-V: OGI) Term Sheet
- Type of financing: Brokered
- Gross proceeds: $60.1 million
- Number of units: 32.5 million
- Price per unit: $1.85
- Closing date: 11/10/20
- Yesterday’s closing price (March 2): $4.97
- Gains: 165.65%
- Warrants: Half
- Strike Price: $2.50
- Expiry date: 11/10/22
- Net ROI w/ warrants ($100k investment): $235,405
Company breakdown:
- Indoor cannabis growers, based in Toronto
- Gaining momentum around recently reinvigorated investor enthusiasm for weed
- Recently received positive coverage from the Globe and Mail, saying that ATB Capital Markets analyst David Kideckel ranks the stock at "sector perform," saying the company's recent acquisition of synthetic cannabis player Hyasynth Botanicals puts it at "the forefront of innovation"
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