Cansortium files for IPO on CSE

Photo of author

By Ted Liu

Cansortium Inc. has filed a preliminary prospectus for a proposed initial public offering (IPO) of units to be priced between $2.00 and $2.30 per unit.

The offering will be conducted on a “best-efforts” basis by Paradigm Capital Inc. and Canaccord Genuity Corp., as co-lead agent. Harris + Harris LLP and DLA Piper (Canada) LLP are acting as legal counsel to Cansortium and the agents respectively.

The IPO is conditional on an aggregate gross amount of $65,000,000 being raised through a combination of the offering and a proposed concurrent private placement.

Cansortium has applied to list its shares on the Canadian Securities Exchange (CSE).

Miami, Florida based Cansortium is an international vertically integrated medical cannabis company. Through its various subsidiaries, Cansortium is presently licensed to produce and/or sell medical cannabis in the United States (Florida, Texas, Pennsylvania and Puerto Rico). It has also secured licensing in Colombia to develop and operate a seed bank and to produce, sell and export medical cannabis. The company has acquired a late-stage applicant, who is currently in the process of acquiring a license to produce and sell cannabis in Canada.

Cansortium had previously intended to list its shares on the CSE through a non-offering prospectus by qualifying the distribution of units issuable from the conversion of previously issued subscription receipts. Paradigm Capital Inc. acted as the lead agent for the $38 million subscription receipts financing, which closed in October 2018.