SMITHS FALLS, ON, March 25, 2015 /CNW/ - Tweed Marijuana
Inc. ("Tweed") (TSXV: TWD), is pleased to announce
that the underwriters of Tweed's bought deal offering that closed
on March 17, 2015 (the
"Offering") have exercised their over-allotment option in
part to purchase an additional 795,360 common shares of Tweed
("Common Shares") at a price of $2.15 per Common Share for gross proceeds to
Tweed of $1,710,024 (the
"Over-Allotment Offering"). The partial exercise
of the over-allotment option closed today.
This partial exercise of the over-allotment option follows
Tweed's previously announced short form prospectus offering, on a
bought deal basis, of 9,302,400 Common Shares for aggregate gross
proceeds of $20,000,160. The Offering was completed at a
price of $2.15 per Common Share (the "Offering
Price") by a syndicate of underwriters led by GMP Securities
L.P. and including Dundee Securities Ltd. and M Partners Inc.
(collectively, the "Underwriters").
In connection with the Offering, Tweed granted the Underwriters
an over-allotment option to purchase up to an additional 1,395,360
Common Shares at the Offering Price, exercisable in whole or in
part, at any time on or prior to the date that is 30 days following
the closing of the Offering. The balance of the
over-allotment option will not be exercised.
Tweed intends to use the net proceeds from the Over-Allotment
Offering primarily for facility expansion, operational expenses and
general working capital purposes including salaries, general
maintenance, utilities, costs associated with regulatory
compliance, and costs associated with client acquisition.
The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, or any U.S. state securities laws, and may not be offered
or sold in the United States or to, or for the account or
benefit of, United States persons absent registration or
any applicable exemption from the registration requirements of the
United States Securities Act of 1933, as amended, and applicable
U.S. state securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor
shall there be any sale of the securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Tweed Marijuana
Tweed is Canada's first publicly traded medical
marijuana company and the first geographically diversified producer
with dual licenses under the Marihuana for Medical Purposes
Regulations.
Through its wholly owned subsidiaries, Tweed Inc. and Tweed
Farms Inc., Tweed operates two state-of-the-art production
facilities in Ontario and distributes marijuana across
the country to Canadian patients managing a host of medical
conditions.
Tweed is dedicated to educating healthcare practitioners,
providing consistent access to high quality medication, and
furthering the public's understanding of how marijuana is used for
medical purposes.
Notice regarding Forward Looking Statements
This news release contains forward-looking statements. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Tweed or its subsidiaries to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Examples of such statements include statements
regarding the use of proceeds from the Offering. Such
forward-looking statements are based on a number of assumptions
which may prove to be incorrect, including, but not limited to: the
ability to obtain any necessary financing; the economy generally;
the yield from Tweed's marijuana growing operations; consumer
interest in products; competition; regulation and anticipated and
unanticipated costs and delays. Although Tweed has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. Readers should not place undue reliance on
forward-looking statements. The factors identified above are not
intended to represent a complete list of the factors that could
affect Tweed or its subsidiaries. Additional factors are noted
under the heading "Risk Factors" in the Company's Management's
Discussion and Analysis of the Financial Condition and Results of
Operations for the three and twelve months ended December 31, 2014 and the Company's short form
prospectus dated March 10, 2015, both
of which are available at www.SEDAR.com. The forward-looking
statements included in this news release are made as of the date of
this news release and Tweed does not undertake an obligation to
publicly update such forward-looking statements to reflect new
information, subsequent events or otherwise unless required by
applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Tweed Marijuana Inc.