Maricann’s $70M financing deal falls through amid OSC probe

TORONTO • Medical cannabis company

says a $70 million financing deal announced last month has fallen through after the companies behind it terminated an underwriting agreement.

The decision by Eight Capital, Canaccord Genuity Corp., GMP Securities L.P., Industrial Alliance Securities Inc. and Clarus Securities Inc. follows the resignation Wednesday of Maricann’s chairman Neil Tabatznik and Raymond Stone, a board director.

It also comes as the Ontario Securities Commission reviews the timing and reporting of certain trades of shares owned or controlled by and Tabatznik and Eric Silver.

It added that the regulator has also told the company on Feb. 8 that Maricann chief executive Ben Ward is the subject of an investigation into his activities while he was CEO of Canadian Cannabis Corp., a wholly unrelated company.

Maricann said earlier this week that it had been advised orally by the underwriters that they were not prepared to proceed and said Thursday that no reason was given for terminating the agreement.

“We are disappointed to have received the notice of termination and are considering our options for further action,” said interim chairman Paul Pathak.

CEO Benjamin Ward added that “it’s business as usual” and the company is “moving full speed ahead in all operational areas.”

Maricann said Wednesday that OSC staff have said they are unable to provide any further information about the review. An OSC spokeswoman said the regulator was not in a position to comment further.

According to insider trading records, Tabatznik on Jan. 23 sold 412,000 shares he indirectly owned through Copper Lake Investments Inc. at roughly $4.16 each or a total of $1.714 million. A day later, Tabatznik sold 438,000 shares at roughly $4.26 each, or a total $1.864 million. And on Jan. 25, he sold another 5,000 shares for $4.25 each, or $21,250.

Stone also sold shares he indirectly owned, through