Hydropothecary to Raise $100 Million Selling Units at $4.00

Hydropothecary Announces $100 Million Public Offering

TORONTO, Jan. 8, 2018 /CNW/ – The Hydropothecary Corporation (“THCX” or the “Company”) (TSX VENTURE: THCX) announced today that it has entered into an agreement with Canaccord Genuity Corp., Eight Capital, and a syndicate of underwriters (the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 25,000,000 units of the Company (the “Units”) at a price of $4.00 per Unit for aggregate gross proceeds of $100,000,000. Each Unit will consist of one common share (a “Common Share”) and one half of one common share purchase warrant (each full warrant, a “Warrant”) of the Company (the “Offering”).

Each Warrant will be exercisable to acquire one common share of the Company for a period of two years following the closing date of the Offering at an exercise price of $5.60 per common share, subject to adjustment in certain events.

The Company has also granted the Underwriters an option to purchase up to an additional 3,750,000 Units under the Offering at a price of $4.00 per Unit (the “Over-Allotment Option”). If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $115,000,000. The Over-Allotment Option is exercisable, in whole or in part, at any time up to 30 days following the date of the closing of the Offering.

The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes.

The Offering is expected to close on or about January 30, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.

The Units shall be offered and sold by way of a bought deal public offering in all provinces and territories of Canada qualified by short form prospectus and will not be offered or sold in the United States or to, or for the account of, United States persons except to qualified institutional investors (as defined in Rule 144A of the United States Securities Act of 1933, as amended).

About The Hydropothecary Corporation

The Hydropothecary Corporation is an authorized licensed producer and distributor of medical cannabis licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (Canada). Hydropothecary creates award-winning innovative, easy to use and easy to understand products. Hydropothecary is rapidly increasing its production capacity in the lead-up to recreational adult-use cannabis. Expansion plans will result in a total of 1.3 million sq. ft. of production space, producing 108,000 kg of dried cannabis per year, making Hydropothecary one of the largest producers in the country. With industry-leading cash cost per gram of $0.89, Hydropothecary is the lowest cost producer in the country. The first licensed producer in Quebec, Hydropothecary is headquartered in the province.

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