/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
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.
Neither the 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.
SOURCE The Hydropothecary Corporation