The Company is moving forward with a position of increased financial strength and flexibility to accelerate entrance in international markets.
MediPharm Labs Corp. (TSX: LABS) a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, is pleased to announce that it has received from escrow the remaining half, net of certain fees, of the $37,822,500 in gross proceeds from the Company's June 8, 2020 private placement. All dollar amounts in this news release are in Canadian dollars.
We are building on our global customer partnerships and market share, providing international distribution expertise and delivering innovative products and brands.Pat McCutcheon, Chief Executive Officer
"We are pleased to have received the remaining portion of this strategic capital positioning us with increased financial strength and flexibility to deliver on longer-term opportunities with larger pharmaceutical and CPG companies and accelerate our entrance in international markets," said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. "We are building on our global customer partnerships and market share, providing international distribution expertise and delivering innovative products and brands. We remain excited to expand our participation across a range of clinical trials that offer potential upside towards the future development of cannabis-based prescription RX products and products that can be registered in various global jurisdictions. We look forward to creating value for all shareholders as we build out our capabilities to drive future sustainable growth."
On June 8, 2020, the Company received the initial $18,911,250 in proceeds of the Offering, net of certain fees, in connection with the placement of a $20,500,000 unsecured convertible note and a warrant to purchase up to 3,601,427 common shares of the Company. The remaining $18,911,250 in proceeds of the Offering were placed in escrow in connection with the placement of a subscription receipt entitles the holder to receive, upon satisfaction of certain escrow release conditions including shareholder approval, a further $20,500,000 unsecured convertible note and a further warrant to purchase up to 3,601,427 Common Shares.
After receipt of Shareholder Approval at the Company's annual and special shareholders' meeting held on August 5, 2020, (i) the Company received from escrow the remaining proceeds of the Offering, net of certain fees, and (ii) the Subscription Receipt was converted into the Second Note and the Second Warrant. The Second Note and the Second Warrant have identical terms to the First Note and First Warrant described in the Company's June 8, 2020 press release.
The Offering remains subject to final approval of the TSX. The Notes and the Warrants and any underlying securities issued pursuant to the Offering are subject to a statutory four-month and one day hold period, ending on October 9, 2020.
To learn more about MediPharm Labs, visit the company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
Get the Latest Marijuana News &
Content in your Inbox!
All your support helps The Green Fund keep writing content for all you
marijuana enthusiasts and potential pot stock investors