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A group of investment banks has cancelled a $70-million bought deal with Maricann Group Inc., as the Ontario cannabis company faces scrutiny from regulators about potential insider trading.

Maricann announced in a news release Wednesday morning that the company “has been advised orally by the underwriters that they are not prepared to proceed with the previously announced bought deal,” although the company has not received an official termination notice.



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Eight Capital and Canaccord Genuity were lead underwriters for the $70-million deal announced on January 29. The syndicate of underwriters also includedGMP Securities L.P., Industrial Alliance Securities Inc. and Clarus Securities Inc.

Two Maricann board members, Raymond Stone and Neil Tabatznik, who are being investigated by the Ontario Securities Commission have resigned.