City View Green seeks C$1M after Alberta retail exit
The fundraising comes as the company shifts its focus to edibles production.
Canadian Edibles maker City View Green Holdings Inc. (CSE: CVGR) is looking to raise up to C$1 million through a private placement as it continues to recalibrate following an Alberta retail exodus earlier this year.
The Toronto-based company said it will issue up to 100 million units at C$0.01 each, according to a news release Thursday. Each unit consists of one common share and half a warrant, with each full warrant exercisable at C$0.05 for three years.
City View Green first announced a capital raise earlier this year and closed a first tranche on June 20, raising C$95,000 from 9.5 million units. A company director participated, subscribing for 1.5 million units. The firm said it’d use the net proceeds for general working capital.
The firm in April exited retail cannabis through its 27.5% ownership in Budd Hutt, which earlier this year relinquished its final two licenses in Alberta.
“Retailers are often surrounded by competition in small towns making it difficult to turn a profit,” City View Green said in a statement at the time.
The exit followed a November 2023 announcement that the company would undergo a strategic review process. City View at the end of June had a working capital deficiency of nearly C$3.9 million and an accumulated deficit of C$44 million.
“These continuing losses cast significant doubt about the company’s ability to continue as a going concern,” management stated in filings.
It also posted a net loss of C$244,328 in its most recent earnings report. The company has yet to generate any revenue from its edibles business.
City View also disclosed a four-month investor relations agreement with Outside The Box Capital Inc., paying $25,000 monthly starting October 15.
