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DionyMed Brands Inc. Announces C$10 Million Bought Deal Private Placement of Units Co-Led by Canaccord Genuity Corp. and Cormark Securities Inc. and Grants Option to Increase Deal Size to C$20 Million
TORONTO, April 15, 2019 /CNW/ – DionyMed Brands Inc. (“DionyMed” or the “Company”) (CSE: DYME; OTCQB: HMDEF), a multi-state cannabis brands, distribution and direct-to-consumer delivery platform, is pleased to announce that it has entered into an agreement with a syndicate of agents co-led by Canaccord Genuity Corp. and Cormark Securities Inc. (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, 3,636,364 units of the Company (the “Units”) at a price of C$2.75 per Unit (the “Issue Price”) for aggregate gross proceeds to DionyMed of C$10,000,001 (the “Offering”).
Each Unit will be comprised of one subordinate voting share (a “Subordinate Voting Share”) and one subordinate voting share purchase warrant (a “Warrant”) exercisable into one Subordinate Voting Share (a “Warrant Share”) at price of C$3.80 per Warrant Share for a period of 36 months following the closing of the Offering. The net proceeds from the Offering will be used primarily towards the Company’s strategic growth initiatives and for general working capital purposes.
Closing of the Offering is expected to occur on or about May 2, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals. Pursuant to the terms of the Offering, the Underwriters have been granted an option to purchase up to an additional 3,636,364 Units at the Issue Price for additional gross proceeds to DionyMed of up to C$10,000,001, which option is exercisable by the Underwriters at any time prior to the Closing Date.
The Company will pay cash commissions to the Underwriters equal to 7.0% of the aggregate gross proceeds of the Offering. The Underwriters will also receive broker warrants exercisable for a period of 36 months from the closing of the Offering to acquire that number of Units which is equal to 7.0% of the number of Units sold under the Offering, at an exercise price equal to the Issue Price.
Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at dionymed.com and follow @DYME_Inc on Twitter and LinkedIn.
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