TORONTO, June 08, 2020 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, is pleased to announce that it has today closed a private placement with an institutional investor (the “Investor”), for aggregate gross proceeds of $37,822,500 (the “Offering”). All dollar amounts in this news release are in Canadian dollars. $18,911,250 of the Offering is related to the placement of a $20.5 million unsecured convertible note (the “First Note”) and a warrant (the “First Warrant”) to purchase up to 3,601,427 common shares of the Company (the “Common Shares”); and $18,911,250 of the Offering is currently being held in escrow and is related to the placement of a subscription receipt (the “Subscription Receipt”) entitling the holder to receive, upon satisfaction of certain Escrow Release Conditions (as defined below), a further $20.5 million unsecured convertible note (the “Second Note” and, together with the First Note, collectively, the “Notes”) and a further warrant (the “Second Warrant” and, together with the First Warrant, collectively, the “Warrants”) to purchase up to 3,601,427 Common Shares. The Company intends to use the net proceeds from the Offering for general corporate purposes, including building on the launch of its Cannabis 2.0 offerings with new product formats and expanding its product and Active Pharmaceutical Ingredient exports. Additionally, the net proceeds will strengthen the Company’s balance sheet as it successfully navigates the economic recession created by the COVID-19 pandemic. “With this strategic capital, MediPharm Labs moves forward confidently with a position of increased financial strength and flexibility to deliver on the longer-term opportunities available to us domestically and internationally that will diversify our revenue and drive long term earnings growth,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “I continue to be excited about the global market opportunity and leveraging our multi-jurisdictional pharmaceutical-quality manufacturing platform in a nascent cannabis market. We are building on our global customer partnerships and market share, providing international distribution expertise and delivering innovative products and brands. Importantly, we are excited to expand our participation across a wide range of clinical trials that offer potential upside towards future development of cannabis-based prescription RX products. We look forward to creating value for all shareholders as we build out our capabilities to drive future sustainable growth.”
MediPharm Labs Closes $37.8 Million Private Placement | wallstreet-online.de - Vollständiger Artikel unter:
https://www.wallstreet-online.de/nachricht/...llion-private-placement |
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