Nova Cannabis Inc. (OTCQB:NVACF) (TSX:NOVC) has filed a preliminary short-form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada.
The base shelf prospectus will, when made final, allow Nova and certain of its security holders to qualify the distribution by way of prospectus in Canada of up to $35 million of common shares, subscription receipts, warrants, debt securities, units or any combination thereof, during the 25month period that the base shelf prospectus is effective. The base shelf prospectus is intended to provide Nova with financing flexibility and additional options for quicker access to equity and/or debt markets as it continues to pursue its strategic plan.
The specific terms of any offering of securities under the base shelf prospectus will be established in a prospectus supplement, which will be filed with the applicable securities commissions and similar regulatory authorities in connection with any such offering. The net proceeds from the sale of any securities issued under the base shelf prospectus could have a wide range of uses including to finance future growth opportunities including acquisitions and investments, to finance capital expenditures, to reduce outstanding indebtedness, for working capital purposes or for general corporate purposes. There is no certainty that any securities will be offered or sold under the base shelf prospectus within the 25-month period that it is effective.
Additionally, Sundial Growers Inc. (NASDAQ:SNDL) has agreed to increase the total principal amount available to Nova Cannabis Stores Limited Partnership, a wholly-owned subsidiary of Nova, under the uncommitted revolving credit facility with Sundial from $10 million to $15 million. As of June 16, Nova has drawn on the credit facility in an aggregate principal amount of $7.5 million.
"The additional access to capital provides Nova with the opportunity to continue to execute its disruptive and market leading strategy in the Canadian cannabis retail industry," stated Marcie Kiziak, CEO of Nova.
Photo by Mackenzie Marco on Unsplash
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