This Cannabis Co. Secures $9.3M In Oversubscribed Financing, Here’s Where The Capital Will Go

By Jelena Martinovic, Featured Writer

LEEF Brands, Inc. (CSE: LEEF) (OTCQB: LEEEF) wrapped up the final closing of its oversubscribed financing, raising across both closings roughly $9.3 million.

What Happened

Led by Mindset Capital, the previously announced financing attracted both existing shareholders and new strategic investors.

CEO Micah Anderson and CFO Kevin Wilson invested personally in the financing.

“Kevin and I were pleased to participate alongside our investors, reflecting our continued confidence in the business and our belief that LEEF is well-positioned as the industry and regulatory landscape evolves,” Anderson said.

The financing consisted of roughly 33.1 million common share units and 11.1 million convertible preferred shares across both closings.

Each common share unit was issued at CA$0.25 ($0.18) and included one common share along with a full warrant exercisable at CA$0.30 over 24 months.

The preferred shares carry a 15% annual dividend, with 10% paid in cash and 5% structured as paid-in-kind (PIK), and can be converted into common shares at a conversion price of CA$0.38 per share.

Why It Matters

LEEF Brands said it will use the funds to support the expansion of Salisbury Canyon Ranch, as well as extraction lab upgrades, inventory growth, working capital, and strategic initiatives.

The company expects its licensed cannabis farm, Salisbury Canyon Ranch, to reach its full 180-acre permitted size by the fall of 2026.

In its first quarter 2026 earnings report, the company said: “as additional acreage comes online throughout 2026, the company expects to significantly increase in-house biomass production, further reducing reliance on third-party sourcing and driving more consistent, high-margin performance over time.”

That said, the LEEF reported an improvement in profitability with gross profit rising to $4.6 million in the first quarter of fiscal 2026, from about $2.1 million a year earlier, pushing gross margins up to 49%, compared to 22% in the first quarter of 2025.

In the meantime, LEEF has recently closed the acquisition of Himalaya, a California-based cannabis concentrates brand, as part of its strategy to enhance vertical integration and boost margins.

On May 8, the company filed for DEA registration as it eyes potential interstate and global export opportunities.

LEEEF Price Action

LEEF Brands’ shares traded 4.76% lower at $0.16 per share at the time of writing on Tuesday.