Matica Enterprises Inc, a Toronto-based cannabis company, has secured a draw-down equity facility of up to $20 million from Alumina Partners, a U.S. private equity firm.
The facility’s proceeds will be used to advance construction of cannabis greenhouses in Québec. Matica is currently building a growing facility that is intended to be part of 1 million square feet of greenhouse capacity on a Hemmingford, Québec property.
Matica earlier this year agreed to acquire a 40 percent stake in topicals research company Yunify Natural Technologies to collaborate on cannabis product development.
Matica Announces $20,000,000 Financing with New York Based Alumina Partners
September 10, 2018 – Toronto, Ontario – Matica Enterprises Inc. (MMJ – CSE) (39N – Frankfurt) (MQPXF – OTC) (“Matica” or the “Company”) is pleased to announce the Company has secured a draw-down equity facility of up to $20,000,000, with Alumina Partners, LLC, a New York-based private equity firm that has made substantial investments in the cannabis space.
This financing agreement allows Matica to continue its growth strategy in the Province of Quebec and to fast track the construction of additional greenhouses. Matica is currently building a 200,000 square foot greenhouse on a 181 acre property in Hemmingford, Quebec. This is Phase 1 of a long-term goal of building 1,000,000 square feet of combined greenhouses on the property. The draw-down nature of this financing gives Matica the flexibility to build, with the ability to access funds when necessary.
Boris Ziger, Matica CEO states, “This is major financing milestone for Matica. With close to $30 million in available funds Matica can quickly advance our projects and become a major player in the Quebec cannabis space. Such a major commitment from Alumina confirms that Matica is pursuing the right course.”
“Matica impressed us with how broadly and deeply they have laid the groundwork for large-scale success in the Quebec cannabis industry,” added Adi Nahmani, Alumina’s Managing Member. “There is no question that Quebec represents one of the largest and fastest growing markets for Canadian cannabis enterprises, and we are very pleased to support Matica in it’s aggressive execution on all fronts toward leading that growth.”
The agreement details the purchase of up to $20,000,000 of units of the Company (the “Units”), consisting of one common share (the “Share”) and one common share purchase warrant (the “Warrants”), at discounts ranging from 15% to 25% of the market price of the Shares, with each Private Placement Offering occurring exclusively at the option of the Company, throughout the 24 month term of the agreement. The exercise price of the Warrants will be at a 25% premium over the market price of the Shares. There are no upfront fees or interest associated with the use of this financing.
Matica has an agreement to earn 70% of RoyalMax Biotechnology Canada Inc. (“RoyalMax”). RoyalMax has submitted the Confirmation of Readiness for a License under ACMPR to Health Canada for the fully completed 10,000 square foot production facility in Dorval. The Company is also committed to building 1,000,000 square feet of greenhouses in the township of Hemmingford, south of Montreal. Matica has also entered into an agreement to acquire a 40% position in Yunify Natural Technologies, a Quebec based health and personal care research and innovation company.
For more information on Matica Enterprises please visit the website at: www.maticaenterprises.com.
On behalf of the Board of Directors
MATICA ENTERPRISES INC.
Boris Ziger, CEO & Chairman
The Company’s public filings are available for review at www.sedar.com and www.thecse.com.
For further information, please contact Boris Ziger, Chief Executive Officer, at: