/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
CALGARY, April 19, 2018 /CNW/ - Westleaf Cannabis Inc.
("Westleaf" or the "Company") is pleased to announce that it has
closed a non-brokered private placement of approximately 25 million
units ("Units") at $0.50 per Unit for
gross proceeds of approximately $12.5
million (the "Offering"). Each Unit consisted of one common
share and one liquidity warrant. The Company intends to use the net
proceeds from the Offering to fund Phase I of its cannabis
cultivation facilities and prospective retail distribution
locations in Alberta and
Saskatchewan as well as for
general corporate purposes.
Concurrently with closing the Offering, Westleaf entered into a
limited partnership agreement (the "Limited Partnership Agreement")
with Delta 9 Cannabis Inc. ("Delta 9") and Delta West Inc. ("Delta
West") for the joint development of a large-scale cannabis
production facility located in Calgary,
Alberta (the "Project"). Pursuant to the Limited Partnership
Agreement, Delta West will act as the general partner and Westleaf
and Delta 9 will be limited partners. Westleaf Cultivation
Management II Inc., a wholly owned subsidiary of Westleaf, will act
as manager of the general partner.
Westleaf and Delta 9 each own a 50% interest in the Project and
will each initially contribute $3
million to the limited partnership which, together with debt
financing, will be used for initial development of the Project.
Delta 9 will provide certain cannabis genetics products to the
Project. The Project is expected to be operational as early as the
third quarter of 2018.
"Formalizing our partnership with Delta 9 is an important
milestone for both our respective companies," said Westleaf
President and co-founder Scott Hurd.
"This strategic partnership allows us to accelerate our growth
plans to become a leader in cannabis in the Canadian Prairie
region, with a vertically integrated presence across Alberta, Saskatchewan and Manitoba. Our goal is for the 'Delta West'
facility located in Calgary,
Alberta to be a world-class indoor cultivation, R&D,
processing, extraction and fulfillment centre which will be capable
of growing premium cannabis flower and producing a diversified
derivative product offering to supply the Canadian and global
markets."
"We said last year we would be focusing heavily on expanding our
footprint in the Prairie Provinces, and this partnership with
Westleaf to build an Alberta
facility is our biggest step yet in achieving that goal," said
Delta 9 CEO John Arbuthnot.
"Westleaf has an excellent team in place, and combined with our
experience and proprietary technology, I believe the Delta West
facility will add great value for our shareholders as legalization
of cannabis proceeds this summer."
Further Information
All information contained in this news release with respect to
Westleaf and Delta 9 was supplied by the parties respectively, for
inclusion herein, without independent review by the other party,
and each party and its directors and officers have relied on the
other party for any information concerning the other party.
About Westleaf Cannabis Inc. Westleaf is a private
vertically integrated cannabis company headquartered in
Calgary, Alberta. In addition to
the Alberta Project, Westleaf is developing a cannabis production
facility in Saskatchewan. Westleaf
and its affiliates are pursuing retail distribution in both
Alberta and Saskatchewan.
About Delta 9 Cannabis Inc. Delta 9's
wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed
producer of medical marijuana pursuant to the ACMPR and operates an
approximately 80,000 square foot production facility in
Winnipeg, Manitoba, Canada. Delta
9's shares trade on the TSX Venture Exchange under the symbol
"NINE". www.delta9.ca
Cautionary Statements
This news release contains forward-looking information within
the meaning of securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify
forward-looking information. In particular and without limitation,
this news release contains forward-looking information concerning;
the use of proceeds of the Offering; the development of a strategic
alliance between the Company and Delta 9; the Project; the details
and anticipated timing of the completion of the Project; the
licensing of the Project; sales of cannabis produced by the
Project; conditions required to complete the Project; the
application for licenses to dispense cannabis products; and the
future development plans of Westleaf, including the anticipated use
of proceeds from the Offering. Although the Company believes in
light of the experience of its officers and directors, current
conditions and expected future developments and other factors that
have been considered appropriate that the expectations reflected in
this forward-looking information are reasonable, undue reliance
should not be placed on them because the Company can give no
assurance that they will prove to be correct. Readers are cautioned
to not place undue reliance on forward-looking information. Since
forward looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, risks associated with
general economic conditions; regulatory resistance in certain
provinces to opening privately owned and operated recreational
cannabis dispensaries; adverse industry events; marketing costs;
loss of markets; future legislative and regulatory developments
involving cannabis; inability to access sufficient capital from
internal and external sources, and/or inability to access
sufficient capital on favourable terms; the medical and potential
cannabis industry in Canada
generally; income tax and regulatory matters; the ability of the
Company and/or Delta 9 to implement their business strategies;
competition; crop failure; currency and interest rate fluctuations;
and other risks. The Company cautions that the foregoing list of
risks and uncertainties is not exhaustive. The forward-looking
information contained in this news release are made as of the date
hereof and the Company does not undertake any obligation to update
publicly or revise any forward looking information, whether as a
result of new information, future events or otherwise, unless so
required by applicable securities laws. All information about Delta
9 contained in this news release has not been independently
verified by the Company.
SOURCE Westleaf Cannabis Inc.