BCC Announces Initial US$10 Million Drawdown on Credit Facility
Resignation of Director
TORONTO, Oct. 24, 2017 (GLOBE NEWSWIRE) — The Canadian Bioceutical Corporation (the “Company” or “BCC”) (CSE:BCC) (OTC:CBICF) today announced that it made an initial drawdown of US$10 million under the US$25 million revolving credit facility originally announced in the Corporation’s press release of May 3, 2017. The funds drawn down against the facility will be earmarked specifically for making further acquisitions, capacity expansion and the development of new facilities in Massachusetts and Maryland.
The lender shall have the right to convert outstanding principal amount of the initial drawdown plus any accrued interest (accruing at the rate of 7% per annum calculated and compounding on a monthly basis) into common shares of the Company at a conversion price of CAD$0.50 per common share.
The funds available to us through the credit facility are an attractive form of capital that will allow the Company to continue to aggressively pursue our expansion strategy and also fund our organic growth plans currently underway.
Scott Boyes, CEO
Resignation of Director
The Company also announced today that Marilyn Bloovol resigned from the Company’s board of directors. On behalf of all shareholders, the board thanks Ms. Bloovol for her years of service and leadership to BCC and we wish Ms. Bloovol all the best in her future endeavors.
The Company will not appoint a replacement for Ms. Bloovol prior to the forthcoming annual general and special meeting (the “Annual Meeting”) of the shareholders of the Company to be held at 11:00 a.m. (Toronto time) on Monday, October 30, 2017.
At the forthcoming Annual Meeting, the persons to be nominated by management to be elected as directors of the Company at the Annual Meeting are as follows:
- W. Scott Boyes
- Robert R. Galvin
- Andrew R. Ryan
- Randall G. Stafford
- Elizabeth M. Stavola
- Senator Richard S. (“Tick”) Segerblom
- Dr. Miles D. Thompson
About The Canadian Bioceutical Corporation
BCC, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides substantial management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona operating under the Health for Life (dispensaries) and the award-winning Melting Point Extracts (“MPX”) (high-margin concentrates wholesale) brands. The successful Health for Life (“H4L”) brand operates in the rapidly growing Phoenix Metropolitan Statistical Area (MSA). The Company also owns assets in Massachusetts, supporting cultivation, production and up to three dispensaries in Massachusetts, as well as is supporting development of a third licensed dispensary in Arizona.
BCC continues to expand its U.S. footprint, being in the process of acquiring three dispensaries and a production license in Maryland, as well as a further operational dispensary in Arizona. The Company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts to develop its legacy nutraceuticals business.