After filing its preliminary prospectus for its pending IPO last month, MedReleaf revised it on May 9th, sharing a lot more information. The Canadian cannabis deal, underwritten by GMP Securities as book-runner and co-lead underwriter with Clarus Securities as a co-lead underwriter and additional underwriters including Canaccord Genuity, Cowen and Company Eight Capital and PI Financial, is expected to price at $9.50-10.50, implying a market capitalization of about $900mm. MedReleaf sold private placement common shares as recently as November at $2.96.

The company, which expects the stock to trade on the Toronto Stock Exchange with the symbol “LEAF”,  intends to raise $80mm, with selling shareholders cashing out $20mm in proceeds. MedReleaf intends to use $40mm to build out its second facility in Bradford, Ontario, $15mm to expand its current facility in Markham, Ontario, $2mm to fund clinical research and product development and the balance for working capital and general corporate purposes.  The IPO is expected to price the week of May 22nd.

Download the MedReleaf Amended and Restated Preliminary Prospectus

Published by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email