Today, CannaOne Technologies (CSE:CNNA) said it’s obtained all formal commitments needed to finance a non-brokered private placement of $500,000 CAD. On the news, CNNA stock shot up, currently trading up nearly 20%.
Here’s what we know.
CannaOne Secures Commitments, CNNA Stock Goes Flying
Founded by a team who recognize the potentials of the cannabis industry, CannaOne Technologies develops proprietary technologies. It also takes a three-pronged approach to the cannabis business.
After announcing the investment terms on Aprill 11, 2019, CannaOne announced on April 25 that it has officially secured formal commitments of $500,000 financing to achieve near-term objectives. The news comes two days after CannaOne provided the market with details of its partnership with Real Health Science.
When the news hit the market, CNNA stock skyrocketed. As of 1:31 PM EDT, CNNA stock is trading at $1.08 on the CSE, which puts it up 16.13%.
CannaOne has made several important announcements in 2019, from the Frankfurt Stock Exchange listing its common shares in January to launching itsprimo.com in February, and announcing that it’s going to be focusing on expanding its global business initiative.
But today’s announcement regarding the private placement is particularly noteworthy—and not just because it sent CNNA stock flying.
What CannaOne Has to Say About the Private Placement
Speaking on the news, CEO Solomon Riby-Williams said CannaOne is “pleased” to disclose that it has “secured formal commitments of $500,000,” adding that the CannaOne team is also “delighted about the strategic investors that are participating in this private placement.”
Riby-Williams also provided the market with an understanding of what it’s going to use the net proceeds from the Offering for. After the final closing, according to Riby-Williams, who has been CEO since October 2016, CannaOne plans to “immediately utilize the net proceeds from the Offering to undertake the near-term deployment.”
Further, the company also intends to utilize the net proceeds to “launch its proprietary software in support and operation of our online marketplace partnerships in the United States and Mexico.”
Doesn’t End There
Just because CannaOne has secured the formal commitments to achieve near-term objectives doesn’t mean the company is going to stop working toward expansion.
According to Riby-Williams, at the same time as utilizing the net proceeds from the Offering, CannaOne will “continue to dedicate and engage further efforts towards additional network expansion.” It will also continue to work on corporate branding, something which could also impact CNNA stock down the road.
Things are looking up for CannaOne Technologies. Do you have any predictions for the future of the company? Will CNNA stock continue trading in the green tomorrow?
Let us know what you think in the comments below!
Featured image: DepositPhotos © jamesgroup