Cannabix Technologies Inc. Closes $4.6 Million Bought Deal Private Placement and $977,500 Concurrent Non-Brokered Private Pla...
December 07 2017 - 9:07AM
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED STATES.
Cannabix Technologies Inc. (CSE:BLO)
(the “Company”) is pleased to announce that it has closed its
private placement of 4,000,000 units (“Units”) of the Company at a
price of $1.15 per Unit (the “Offering Price”), for aggregate gross
proceeds of $4.6 million (the “Offering”). Each Unit consists
of one common share of the Company (a “Common Share”) and one
common share purchase warrant, each warrant entitling the holder to
purchase one additional Common Share at an exercise price of $1.60
for a period of three years following closing. The Offering was
underwritten by Cormark Securities Inc. (the “Underwriter”), which
exercised in full its option to purchase up to an additional
500,000 Units at the Offering Price.
In connection with the Offering, the Underwriter
received a cash commission of $276,000 and 240,000 broker warrants
(the “Broker Warrants”), each Broker Warrant entitling the holder
to purchase one Unit at the Offering Price for a period of two
years following closing.
Non-Brokered Private
Placement
In addition, the Company is pleased to announce
that it has closed a concurrent non-brokered private placement (the
“Concurrent Private Placement”) of 850,000 units at the Offering
Price, for aggregate gross proceeds of $977,500. The units issued
pursuant to the Concurrent Private Placement were issued on
substantially the same terms as the Units issued under the
Offering.
The Company intends to use the net proceeds from
the Offering and the Concurrent Private Placement to fund research
and development related to its cannabis breathalyzer technologies
and for working capital and general corporate purposes.
All securities issued in connection with the
Offering and the Concurrent Private Placement are subject to a
statutory hold period expiring four months and one day after
December 7, 2017.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described herein in the United States. The securities have not been
and will not be registered under the United States Securities Act
of 1933, as amended (the “U.S. Securities Act”) or any state laws
and may not be offered or sold in the United States or to U.S.
persons unless registered under the U.S. Securities Act and
applicable state securities laws or unless an exemption from such
registration is available.
About Cannabix
Cannabix Technologies Inc. is a leader in
marijuana breathalyzer development for law enforcement and the
workplace. Cannabix has established breath testing technologies in
the pursuit of bringing durable, portable hand-held tools to market
to enhance detection of marijuana impaired driving offences on
roads at a time when marijuana is becoming legal in many global
jurisdictions. Cannabix is working to develop drug-testing devices
that will detect THC - the psychoactive component of marijuana that
causes intoxication - using breath samples. In Particular, Cannabix
is focused on developing breath testing devices for detection of
recent use of THC, in contrast to urine testing for THC metabolite
that requires an invasive collection and reflects use days or even
weeks earlier. The devices will also be useful for other practical
applications such as testing employees in the workplace where
intoxication by THC can be hazardous.
On behalf of the Board of Directors of
Cannabix
Rav Mlait CEO & Director
Cannabix Technologies Inc.
For further information about Cannabix
Technologies Inc. or this news release, please visit our website at
www.cannabixtechnologies.com or contact the Company at
info@cannabixtechnologies.com.
Caution Concerning
Forward‐Looking Statements
This press release contains forward-looking
information that involves various risks and uncertainties regarding
future events. Such forward-looking information can include without
limitation statements based on current expectations involving a
number of risks and uncertainties and are not guarantees of future
performance of the Company, such as: the use of proceeds of the
Offering and the Concurrent Private Placement; that the Company
will successfully develop a commercial or prototype product(s) or
successful trial or pilot of company technologies; that commercial
sales of any kind will actually materialize; and that the Company
will have sufficient funds to complete product development. There
are numerous risks and uncertainties that could cause actual
results and the Company’s plans and objectives to differ materially
from those expressed in the forward-looking information, including:
(i) adverse market conditions; (ii) risks regarding protection of
proprietary technology; (iii) the ability of the Company to
complete financings; (iv) the ability of the Company to develop and
market its future product; and (v) risks regarding government
regulation, managing and maintaining growth, the effect of adverse
publicity, litigation, competition and other factors which may be
identified from time to time in the Company's public announcements
and filings. There is no assurance that the marijuana breathalyzer
business will provide any benefit to the Company, and no assurance
that any proposed new products will be built or proceed. There is
no assurance that existing “patent pending” technologies licensed
by the Company will receive patent status by regulatory
authorities. The Company is not currently selling commercial
breathalyzers. Actual results and future events could differ
materially from those anticipated in such information. These and
all subsequent written and oral forward-looking information are
based on estimates and opinions of management on the dates they are
made and are expressly qualified in their entirety by this notice.
Except as required by law, the Company does not intend to update
these forward-looking statements.
Cannabix Technologies Inc. 7934 Government
Road, Burnaby, B.C., V5A 2E2Phone: (604) 551-7831
Fax:
604-676-2767info@cannabixtechnologies.comcannabixtechnologies.com
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