Chinook Insiders are the largest investors in
the Series A financing as its German subsidiary expands in the
European medical cannabis industry
BERLIN, June 12, 2019 /CNW/ - Chinook Tyee Industry
Limited ("Chinook") (TSXV: XCX), (Frankfurt: C4T, ISIN: CA16961T2083)
completed its Series A non-brokered placement (Private Placement)
of 10,000,000 Common Shares at a subscription price of
$0.15 per Common Share (Common
Shares), raising $1,500,000, which
Chinook intends to use for working capital purposes. All
securities issued pursuant to the Private Placement will be subject
to a four-month hold period, which will expire on October 13, 2019.
"Our Series A financing was oversubscribed and we thank
investors in Germany and
Canada for their support," said
Mr. Alex Blodgett, CEO of
Chinook. "Chinook's insiders invested the maximum level
allowed and are excited about developments ahead."
Chinook paid a cash finder's fee of $16,189.25 and issued 107,928 finder's warrants
(each, a "Finder's Warrant") to PI Financial Corp., and paid a cash
finder's fee of $19,845.00 and issued
132,300 Finders Warrants to General Research GmbH. Each
Finder's Warrant entitles the holder thereof to acquire one
additional Common Share at a price of $0.15 for a period of six months from the date of
issuance.
The Private Placement constitutes a related party transaction
within the meaning of Multilateral Instrument 61-101 –
Protection of Minority Securityholders in Special
Transactions ("MI 61-101"), as insiders of Chinook subscribed
for an aggregate of 2,536,842 Common Shares for gross proceeds of
$380,526. Chinook is relying on the
exemptions from the formal valuation and minority shareholder
approval requirements of MI 61-101 contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101, as the fair market value of the
participation in the Private Placement by insiders did not exceed
25% of the market capitalization of Chinook, as determined in
accordance with MI 61-101. Chinook did not file a material change
report in respect of the related party transaction at least 21 days
before the closing of the Private Placement as the details of the
participation by related parties of Chinook were not settled until
shortly prior to the closing of the Private Placement.
About Chinook Tyee Industry Limited
Chinook is a German managed investment company with two European
subsidiaries, AMP Alternative Medical Products GmbH (AMP Germany)
and Mercury Partners & Company plc. AMP Germany business
is to import pharmaceutical grade (EU-GMP) cannabis produced by
Canadian licensed producers into Germany. AMP Germany in cooperation with its business
partners will provide EU-GMP audit, logistical, transportation,
importation and other related services for the importation of
medical cannabis into Germany. Mercury Partners & Company
plc is a Malta based investment
company.
For more information, please visit: www.amp-eu.com.
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Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statements
This news release contains forward-looking statements that
are based on the Company's expectations, estimates and projections
regarding its business and the economic environment in which it
operates, including with respect to its business plans and
milestones and the timing thereof. Although the Company believes
the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and involve risks and uncertainties that are
difficult to control or predict. Therefore, actual outcomes and
results may differ materially from those expressed in these
forward-looking statements and readers should not place undue
reliance on such statements. These forward-looking statements speak
only as of the date on which they are made, and the Company
undertakes no obligation to update them publicly to reflect new
information or the occurrence of future events or circumstances,
unless otherwise required to do so by law.
SOURCE Chinook Tyee Industry Limited