CB2 Insights (CSE: CBII) is looking to generate some short term cash. The firm this morning announced an early warrant exercise incentive program as a means to generate cash flow from currently out of the money stock warrants that are far away from being exercised. If fully exchanged under the early incentive program, the firm expects to generate approximately $1.06 million in cash.
The warrant incentive program pertains to certain warrants that expire between December 19, 2019 and February 15, 2022. Those eligible have an exercise price between $0.50 and $0.90, of which there are expected to be approximately 11.8 million. Under the program, these warrants will be exercisable at a price of $0.09 from December 11 through to December 26, 2019.
The program is being marketed as a means of making warrants more reflective of the current share price. The firm has identified that the program has support from certain institutional shareholders, including Merida Capital and Phyto Partners, however it was unclear if complete conversion commitments were entered among the parties, or how many warrants they may hold.
Funds raised from the program by CB2 Insights are stated to be used for “seasonal pressures of clinical operations,” with the funding expected to also assist with the growth of the research and data business units.
CB2 Insights last traded at $0.09 on the Canadian Securities Exchange.
Information for this briefing was found via Sedar and CB2 Insights. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
