Together (TASE: TGDR), which specializes in cultivating and producing medical cannabis products, has reported a successful, oversubscribed NIS 25.2 million convertible bond offering. Demand was NIS 57 million - 2.2 times the amount sought. The minimum price for the offering was NIS 910 for every NIS 1,000 (nominal value) and the closing price stood at NIS 951 - significantly higher than the minimum price. Due to the closing price, the discount rate at which the bond was issued was 4.9%.
Together Chairman Yohanan Danino: "The results of the offering are an exceptional vote of confidence in Together, which has shown that it is impressively meeting its business plans since the day it was founded."
The bonds include a lien on the revenue from sales contracts in Israel signed as of January 8, 2020, which will be directly deposited into the trustees account that will be held in security for the bondholders. The aforementioned revenue resulting from the five agreements have been signed with the companies: Cannabis Laboratories, Panaxia, Teva Adir, Univo and Cannabliss (a subsidiary). Revenue should amount to more than NIS 224 million, of which NIS 48.50 million is expected in 2020.
The bond offering was led by Apex Issuances managed by Eliav Bar-David and Aharon Samra and Advs. Ilan Gerzi, Nir Zohar, and Hilla Shaanani from the Pearl Choen Zedek Latzer Baratz law firm.
Together has begun commercial operations from its farm in Israel, after receiving IMC-GAP approval. The facility in Ashkelon covers five acres, one of the largest in Israel, and allows the company to cultivate large amounts of medical cannabis produce. Together's medical cannabis products will be available in paharmacy stores and for medical cannabis patients in Israel, who in recent months have suiffered a severe shortage of products. The company plans bringing the farm in Ashkelon to high production capacity and to sign additional commercial agreements.
The company also has a large actively operating cultivation facility covering 7.5 acres in Uganda that has received GACP authorization and has begun harvesting a second crop. The facility meets the World Health Organization Good Agricultural and Collection Practices (GACP) guidelines for agricultural cultivation for medical use which complies with the standards and regulations approved and recognized in Europe.
Published by Globes, Israel business news - en.globes.co.il - on February 6, 2020
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