TransCanna Holdings Inc. (CSE: TCAN) recently completed its initial public offering (“IPO”) of 4.4 million units at a price of C$0.50 per unit, for total gross proceeds of C$2.2 million. The funds are expected to help finance the company’s entry into California’s cannabis transportation and branding market.
Each unit sold in the IPO consisted of one common share of the company and one share purchase warrant entitling the holder to purchase one additional common share at a price of C$1.00 per warrant share for a period ending one year from the date of issuance. The company may accelerate the expiration date of the warrants if the daily volume-weighted average share price of the its common shares on the Canadian Securities Exchange (or such other exchange on which the company’s common shares are then trading) is equal to or greater than C$1.50 for 10 consecutive trading days, according to a news release about the completion of the IPO (http://cnw.fm/Y5zbY). The funds will be used to fund the company’s general working capital for the next 12 months according to a prospectus filed on SEDAR in December (http://cnw.fm/jvZ7A).
On January 18, the company was approved to commence trading on the Frankfurt Stock Exchange under ticker symbol ‘TH8’.
The British Columbia, Canada-based company was incorporated in October 2017 and expects its principal business to be the provision of branding, transportation, distribution, logistics and fulfillment services to the medical and adult-use cannabis industry in California — an emerging market space that it intends to manage through wholly owned California subsidiaries GF Group Inc. (“GF”) and TransCanna Management Inc. (“TCMI”). TCMI manages TCMD, an affiliate of the company.
California is among nine states and the District of Columbia that have legalized recreational marijuana use in the United States, creating the potential for TransCanna’s expansion beyond California at some future point. For now, however, the company is focused on creating and growing its enterprise in California.
Transporting cannabis products in California remains challenging in the months following full legalization because of a patchwork variety of local and state regulations. Companies regulated by the U.S. Department of Transportation are barred from transporting the material, because cannabis sales remain illegal under federal law.
“Cannabis distribution and transportation is a relatively new sector of the overall cannabis industry in California, as a result of the state of California regulating all cannabis related activities effective January 1, 2018,” the prospectus reads. “There are various types of licenses issued by the state of California in the cannabis industry, of which TCMD is applying for a cannabis distributor and transportation license. Currently there is a limited pool of distribution and transportation companies operating in this area.”
TCMD has already entered into three exclusive distribution agreements with licensed operators on the condition that the company gets all the necessary distribution and transportation licenses and California state permits.
Owing to the potential appeal of transportation operations to criminal elements, TCMD is preparing to undertake security measures for its transports, including the establishment of full-time monitoring of its facilities under contract with an independent security firm, GPS tracking of vehicles and state-of-the-art communications and video equipment to facilitate the alerting of authorities if any such problems arise. Personnel will also be screened using an extensive vetting process, according to the company prospectus.
For more information, visit the company’s website at www.TransCanna.com
About HempWire
HempWire (HW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) HempNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, HW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. HW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, HW brings its clients unparalleled visibility, recognition and brand awareness. HW is where news, content and information converge.
Receive Text Alerts from HempWire: Text “Cannabis” to 21000
For more information please visit https://www.hempwire.com and or https://HempWire.News
Please see full terms of use and disclaimers on the HempWire website applicable to all content provided by HW, wherever published or re-published: https://www.hempwire.com/disclaimer/
HempWire (HW)
Denver, Colorado
www.hempwire.com
303.498.7722 Office
Editor@HempWire.net
Legislators in states across the country are working towards strictly regulating and/or banning intoxicating hemp…
A proposal introduced by Sen. Colleen Burton that would ban delta-8 THC hemp products is…
California recently extended a ban on intoxicating hemp products with THC that was set to…
A new poll has determined that frequent consumers of marijuana like using delivery platforms to…
The demand for plant-based proteins has increased in the last couple of years as consumer…
The CBD market in the United Kingdom has grown since the compound’s extracts were designated…