M7’s shares launched at the modest price of 50 Canadian cents, or 37 cents per share, with 87,529,325 shares listed and trading. The company has 100,959,035 shares reserved for issuance on exercise of various conversion options from prior placements.
M7 raised $10.2 million of private investment this year in the lead up to its listing. These took the form of three private placements of equity and convertible debt, a 15% interest convertible note offering netting $2.5 million, a 17.5% interest convertible note offering netting $5.4 million and a unitized private placement netting $2.3 million.
“M7's recent reverse takeover transaction and this CSE public listing are transformative milestones for our company,” M7 Chief Executive Sturges Karban said in a statement. “The listing equips M7 with an array of strategic benefits that will prove critical to our success, including enhanced global visibility and greater direct access to the capital markets as we look to expand our omnichannel strategy across the rest of California, and eventually other North American markets, as well.”
Cannabis markets have been volatile under Covid-19. Purchases of legal cannabis products spiked in the early days of the pandemic, as marijuana businesses were declared essential and consumers looked to dull the boredom of ongoing lockdowns. Those sales have slowed in recent weeks, however, possibly relating to the expiration of the $600 per month unemployment benefits at the end of July.
M7 pitches itself as a winner in the space, drawing investment despite the slowdown in other corners of the industry. The company expects to draw in an additional $5.5 million through the sale of warrants within the next two weeks, according to a spokesperson.
