ABcann Global Receives $11.9 Million from Exercise of Warrants
September 18 2017 - 8:00AM
ABcann Global Corporation (TSX-V:ABCN)
(“
ABcann” or the “
Company”) is
pleased to announce that it has received total proceeds of
$11,895,298 from the exercise of an aggregate of 19,185,965
warrants since the closing of the Company’s acquisition of ABcann
Medicinals Inc. (“
ABcann Medicinals”) on April 28,
2017. These warrants, each of which was exercised into one ABcann
common share, expired on September 9, 2017. They were originally
issued under private placements completed by ABcann Medicinals in
2014 and 2015. After giving effect to the exercise of the warrants,
ABcann’s current cash position stands at approximately $45 million,
providing the Company with the capital necessary to expand its
production.
“ABcann thanks our shareholders for their
continued support and confidence as we work toward expanding our
facilities and increasing production. Our strong financial
position, represented by our current cash position is earmarked for
new construction and will facilitate the timely execution of our
business plan,” said director and CEO, Aaron Keay. “The Company’s
main focus in the coming months will be on the deployment of
capital towards the expansion of our existing Vanluven facility and
development and construction of the new Kimmett facility, as well
as the pursuit of our international expansion plans.”
None of the shares issued on exercise of the
warrants have been, or will be, registered under the United States
Securities Act of 1933, as amended (the “1933
Act”), and none of them may be offered or sold in the
United States absent registration or an applicable exemption from
the registration requirements of the 1933 Act. This press release
shall not constitute an offer to sell or a solicitation of an offer
to buy nor shall there be any sale of the securities in any State
where such offer, solicitation, or sale would be unlawful.
About ABcann Global:
ABcann was one of the first companies to obtain
a production license under the Marijuana for Medical Purposes
Regulations, which it received in March 2014. The Company obtained
its sales license in December 2015. ABcann’s flagship facility in
Napanee, Ontario contains proprietary plant-growing technology,
including environmentally-controlled chambers capable of monitoring
and regulating all variables in the growing process. This approach
and the systems in place allow ABcann to produce organically grown
and pesticide-free, high-yielding plants, which, in turn, can
generate high-quality products that are consistent from batch to
batch. ABcann is able to control environmental and nutrient
demands, tailor-made for a particular strain of cannabis, without
the variation that is typical when producing large quantities in
less-controlled, larger rooms and greenhouse-type structures.
ABcann’s modular approach to systems technology eliminates scale-up
risk and enables ABcann to expand anywhere in the world and
maintain consistency and quality of product.
ABcann is expanding capacity in its current
facility to approximately 30,000 sq ft and concurrently undertaking
its expansion into a new 150,000 sq ft facility in Napanee. ABcann
is pursuing opportunities in Germany, Australia, Israel and other
jurisdictions as well as exploring the development of multiple
delivery vehicles.
ON BEHALF OF THE BOARD OF
DIRECTORS
“Ken Clement”
Ken ClementExecutive Chairman
For further information, please contact Aaron
Keay by email at aaron@ABcannglobal.com, or Leo Karabelas by phone
at 416 543-3120 or by email at leo.k@ABcannglobal.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are
forward-looking statements, which are statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Forward
looking statements in this news release include statements relating
to: the Company’s expected use of proceeds obtained from the
exercise of the warrants; its growth strategy and plans to expand
production capacity and sales; and its proposed expansion and
development plans both in Napanee and internationally. Such
statements are subject to risks and uncertainties that may cause
actual results, performance or developments to differ materially
from those contained in the statements, including: (i) that ABcann
may not be able to substantially expand its production capacity;
(ii) that ABcann may not be able to meet its aggressive
construction and expansion timelines at its Napanee facilities;
(iii) that the $60 million in funds ABcann expects to obtain for
construction of the Kimmett facility will not be received; (iv)
that ABcann may not be able to increase the sales of its premium,
organically grown, pesticide free cannabis products in the current
domestic market or internationally; (v) that ABcann may not be able
to distribute globally in the emerging markets it has targeted;
(vi) that ABcann may experience delays or obstacles in pursuing its
growth strategy; (vii) regulatory risks; (viii) that ABcann may not
be able to serve larger and broader markets as a result of its
production increase; and (ix) other factors beyond the Company’s
control. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
Readers are urged to consider these factors, and the more extensive
risk factors included in the Company’s filing statement dated March
31, 2017 and MD&A for the three and six months ended June 30,
2017, which are available on SEDAR, carefully in evaluating the
forward-looking statements contained in this news release and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these
cautionary statements. The forward-looking statements in this news
release are made as of the date hereof and the Company disclaims
any intent or obligation to update publicly any such
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws.
Abcann Global Corporation (TSXV:ABCN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Abcann Global Corporation (TSXV:ABCN)
Historical Stock Chart
From Sep 2023 to Sep 2024