Chrystal Capital’s ‘Special Sit’s’ team raise US $27 million for the Canadian Bioceutical Corporation
Chrystal Capital has raised US $27 million for the Canadian listed Canadian Bioceutical Corporate, via an oversubscribed private placement.
BCC is a vertically integrated and established legal medical marijuana business, based in Toronto, Canada and listed on the Canadian Securities Exchange and the US OTC. The US $27 million placing was completed at CA$0.20.
Given current year forecast revenue of CA$20 million and EBITDA of CA$6 million, BCC is now in a strong position to continue to consolidate the highly fragmented and fast growing North American marijuana market.
Medical marijuana is already legal in over half the states in America, as it provides significant health benefits and tax revenues. Market participants anticipate the US marijuana market will grow from US$7 billion in 2016 to around US$22 billion in 2020. The fragmented nature of the US marijuana market creates a very significant opportunity, for well capitalized early movers, such as BCC, to expand through a roll up strategy.
Proceeds of the fundraise allowed BCC to satisfy the US$15 million cash purchase price for the Arizona business, with the remaining US$12 million to be used to build out a new cultivation facility in Arizona and support new acquisitions.
Concurrent with the acquisition of the highly profitable business, BCC has also appointed Elizabeth Stavola, founder of Stavola Medical Marijuana Holdings, Health for Life Inc., GreenMart of Nevada, GreenMart of Maryland, Elemental Health Group of Pennsylvania, and CBD For Life, as President of its US Operations.
“We are extremely pleased that Chrystal far surpassed the US $20 million that we needed to raise to acquire the business, and in such a short time frame. This transaction makes us one of the most profitable marijuana company listed in Canada”
“We continually look for high quality investment opportunities to show our family office network. BCC represented a profitable platform for our Families and HNWI’s to access the fast growing regulated medical marijuana business and we are delighted to see the shares trading significantly higher in the after market.”
Chrystal Capital’s Special Situations team advises on private and public transactions with an emphasis on bespoke, esoteric opportunities demonstrating profitability and strong return potentials.