Sativa Wellness Group Inc (LON:SWEL, CNSX:SWEL) is planning to raise up to a gross C$4mln (£2.25mln) to invest its new health screening services.
Executive chairman Geremy Thomas said the new funds raised will speed up the national reach planned for the seed-to-consumer cannabidiol (CBD) group’s wellness health screening division, as well as being used for working capital and investment across the whole wellness business.
Sativa’s health screening services include coronavirus swabbing and blood testing.
“The clinic model now proven to generate income will benefit from investment in the infrastructure to support an even wider rollout of testing centres across the UK,” the company said, with the fundraising also providing additional marketing capital to raise the profile of the new services as well as money to invest in mobile clinics, staff and clinical standards.
Sativa Wellness also said its wholly owned subsidiary, Borganic Consulting, has reached a settlement with Dragonfly Biosciences that includes an ongoing commercial arrangement for the supply of CBD.
The fundraising will be carried out as a non-brokered private placement financing at a price per unit of C$0.07875, with each unit consisting of one ordinary share and half of a warrant to purchase one additional share over a period of 24 months.
The exercise price of the warrants will be C$0.105 per warrant share.
Broker Canaccord Genuity will be paid a finder’s fee of 8% of the total financing in cash and 8% of the financing in warrants, with the cash commission to be payable in cash or units at Canaccord’s option.