CubicFarm Systems, a Canadian vertical farming technology solutions provider, has announced the price and terms of the company’s overnight marketed offering of unsecured convertible debenture units and common shares. The offering will be carried out on a best efforts agency basis led by joint bookrunners Raymond James Ltd and Canaccord Genuity Corp.

 The company will offer debenture units and common shares at a price of USD 1,000 per debenture unit and USD 0.55 per common share to raise a total of USD 10 million. Each debenture unit will include a 5-year 8% unsecured convertible debenture with 400 common share purchase warrants. The holder will be entitled to exercise each warrant for one common share of the company until June 2, 2025 at a price of USD 0.71. The debentures can be converted into common shares of the company at a fixed price of USD 0.68 per share. Holders can exercise this option at any time before the maturity date and the company’s share redemption date.

Holders will also have an over-allotment option to sell an additional 15% of debenture units and shares, which can be exercised at any time within 30 days following the closing date of the offering.

The funds will be used to support working capital, R&D, and business development. The offering is expected to close on June 2, 2022 subject to the approval of the Toronto Stock Exchange (TSX) and other regulatory requirements.