TRUL stock is trading lower this morning after Trulieve Cannabis (CSE:TRUL) (OTCQX:TCNNF) priced its previously announced public offering of debenture units.
Key Details
Over the past few months, the cannabis sector has gone through a fair bit of trouble, and stock prices of many of the best-known companies have experienced significant drops. In such situations, companies have to go for share offerings since credit often dries up, and Trulieve has done just that.
Today, Trulieve Cannabis announced the key details of its previously announced public offering.
The company aims to raise $60,000,000 through this senior secured note, and the whole thing is going to be made up of notes that will mature in 2024. In addition to that, the company is also going to offer 1,560,000 warrants to all those who participate in this issue.
TRUL stock is down 1% at $13.25.
The company has revealed that it is going to offer 60,000 units in total at $980 per unit. It goes without saying that this is a significant development for the company, considering the fact that the industry at large may not be at its best right now.
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Trulieve Stock Recovering From Recent Fall
The cannabis space is capital intensive, and a company needs to keep expanding its operations in order to survive. Towards the end of August, TRUL stock tanked badly and fell by as much as 50%. However, it has managed to make a recovery in recent days.
The key to the company’s growth is its continued expansion in the state of Florida, which is regarded as one of the most lucrative cannabis markets in the industry. At this point in time, Trulieve Cannabis operates 37 retail stores in the state and intends to raise this number to 44 by the end of 2019.
However, despite its troubles with the stock price, it should be noted that the company has recorded excellent revenues growth and expects to touch as much as $400 million by 2020. Additionally, it is already profitable and generated EBITDA adjusted profits of $57.5 million in Q2 2019. It also has minor operations in California, Massachusetts, and Connecticut.
The company is all set to report its third-quarter earnings on Monday, November 18, 2019, after market close.
What do you think of TRUL stock ahead of the earnings? Share your views.
Featured image: DepositPhotos © maxkabakov
