GOF strikes cannabis Gold in CanniMed IPO

Ted Liu

Updated on:

CanniMed Therapeutics Inc. completed its initial public offering (IPO) on December 29, 2016, issuing 5 million common shares at a price of $12.00 per common share for gross proceeds of $60 million.

CanniMed Therapeutics commenced trading on the Toronto Stock Exchange under the symbol “CMED”.

Golden Opportunities Fund Inc. (GOF), a retail fund managed by Westcap Mgt and the single largest shareholder of CanniMed, holds 3,684,128 shares representing approximately 18.57% of the issued and outstanding common shares of CanniMed on a non-diluted basis, 29,092 warrants exercisable into 29,092 common shares at a price of $5.50 per share and $1,620,000 debentures convertible into 294,544 shares of CanniMed at a price of $5.50 per share.

The value of GOF holdings in CanniMed is approximately $46.3 million based on the IPO share price, representing 6.8 times of its investment costs.

CanniMed stock closed at $10.75 on December 30, 2016.

photo credit: CanniMed