TORONTO, June 17, 2019 (GLOBE NEWSWIRE) — MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”), a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce that it has closed its previously announced bought deal offering of 13,514,000 common shares in the capital of the Company (“Common Shares”) at a price of $5.55 per Common Share for aggregate gross proceeds of C$75,002,700 (the “Offering”). The Offering was underwritten by a syndicate of underwriters led by Scotia Capital Inc., GMP Securities L.P. and BMO Nesbitt Burns Inc. (collectively, the “Underwriters”). The Company paid a cash commission in consideration for the services provided by the Underwriters.
The Company has granted the Underwriters an option (the “Over Allotment Option”) to purchase up to an additional 2,027,100 Common Shares on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes. In the event the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $86,253,105.
The Company plans to use the net proceeds from the Offering to fund the Company’s ongoing capital expenditures at its Canadian and Australian facilities, for domestic and international expansions, research and development and general corporate purposes.
We are extremely pleased to be closing this successful and oversubscribed bought deal financing, a key milestone that significantly strengthens our balance sheet and supports continued growth.
Pat McCutcheon, Chief Executive Officer
This financing couldn’t come at a more opportune time as we look to roll-out further end-consumer cannabis products (including formulated oil bottles, gel caps and vape cartridges) following the recent announcement of the final regulations authorizing additional cannabis extract-based products, which are expected to come into force this upcoming October. Our balance sheet positions us well to execute strategic international expansions to develop our business in new jurisdictions and secure a global supply chain.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
About MediPharm Labs Corp.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation license. This expert focus on cannabis concentrates from being built to cGMP (current Good Manufacturing Practices) and ISO standard-built clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-like cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce cannabis oil concentrate products for resale globally on a private label basis.
Get ahead of the crowd by signing up for 420 Investor when it becomes available again. It’s the largest & most comprehensive premium service for cannabis investors since 2013.