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TORONTO, March 01, 2018 (GLOBE NEWSWIRE) -- Maricann Group Inc. (CSE:MARI) (OTCQB:MRRCF) (FRANKFURT:75M) “Maricann” or the “Company”) announced today that it has received a notice of termination from Eight Capital, Canaccord Genuity Corp., GMP Securities L.P., Industrial Alliance Securities Inc. and Clarus Securities Inc. (the “Underwriters”), terminating their obligations pursuant to an underwriting agreement dated February 2, 2018 (the “Underwriting Agreement”), whereby the Underwriters agreed to purchase on a bought deal basis 17,500,000 units of the Company, for gross proceeds of $70,000,000 (the “Financing”) at a price of $4.00 per unit. The notice of termination received from the Underwriters did not provide the reason for the Underwriters terminating their obligations under the Underwriting Agreement.
Interim Chairman Paul Pathak commented, “We are disappointed to have received the notice of termination and are considering our options for further action. In the meantime, the Company has a focus on moving forward from a solid position to build increased shareholder value. We appreciate the constructive dialogue we are having with many of our shareholders.”
The Company remains committed to continue efforts to complete the prospectus qualification process for the distribution of the units underlying the 20,125,000 special warrants issued on January 9, 2018. As previously announced each special warrant will entitle the holder to receive, upon the exercise thereof, for no additional consideration, 1.05 units (instead of one (1) unit) provided, however, that any fractional entitlement to such units will be rounded down to the nearest whole unit.
Maricann continues to focus on its strategy to deliver growth and value as a future leader of the Canadian cannabis sector. The Company’s operations are fully-funded, with approximately $48.2MM in the bank. The construction of Maricann’s state-of-the-art 942,000 sq. ft. flagship facility in Langton, Ontario continues on schedule, with first planting planned to occur on March 23, 2018, subject to Health Canada approval. Photos of construction progress are available on the Company’s website at https://maricann.com/investorrelations.
“At this time it’s business as usual, we persevere with focus on executing our business plan, all material agreements pertaining to operations remain intact and the Company is moving full speed ahead in all operational areas. We are fully financed for existing commitments with approximately $48.2MM of cash on hand, following the closing of the special warrants financing where the Company raised $40.25 MM in gross proceeds," said Benjamin Ward, CEO of Maricann Group Inc.
About Maricann Group Inc.
Maricann is a vertically integrated producer and distributor of marijuana for medical purposes. The company was founded in 2013 and is based in Toronto, Canada and Munich, Germany, with production facilities in Langton, Ontario, Canada where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada. and Dresden, Saxony, Germany. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) build out, capable of producing 95,000 kg of dry cannabis flower per year to support existing and future patient growth.
For more information about Maricann, please visit our website at www.maricann.ca
Forward Looking Information
Certain statements in this document contain forward-looking statements which can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “desires”, “will”, “should”, “projects”, “estimates”, “contemplates”, “anticipates”, “intends”, or any negative such as “does not believe” or other variations thereof or comparable terminology. No assurance can be given that potential future results or circumstances described in the forward-looking statements will be achieved or will occur. By their nature, these forward-looking statements, necessarily involve risks and uncertainties, including those discussed herein, that could cause actual results to significantly differ from those contemplated by these forward-looking statements. Such statements reflect the view of the Company with respect to its strategy, its construction activities at the Langton facility and timing of first planting thereon, the review of its options in connection with the Underwriting Agreement and possible next steps, the qualification of the special warrants and other future events, and are based on information currently available to the Company and on assumptions, which it considers reasonable. Management cautions readers that the assumptions relative to the future events, several of which are beyond Management’s control, could prove to be incorrect, given that they are subject to certain risk and uncertainties, and that actual results may differ materially from those projected. Factors which could cause results or events to differ from current expectations include, among other things: obtaining all required regulatory approvals for the Langton facility and the timing thereof; weather issues affecting timing for planting; changes in laws and/or regulations affecting the cannabis industry; fluctuations in operating results; the impact of general economic, industry and market conditions; the ability to recruit and retain qualified employees; fluctuations in cash flow; increased levels of outstanding debt and obligations under a capital lease; expectations regarding market demand for particular products and the dependence on new product development; the impact of market change; the impact of price and product competition and other risks and uncertainties as set forth in the Company’s annual information and other continuous disclosure document filed under the Company’s SEDAR Profile at www.sedar.com. Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Contact information:
Investor Relations:
Graham Farrell
Director of Investor Relations
graham@maricann.ca
647-643-8557
Corporate Headquarters (Canada)
Maricann Group Inc. (Toronto)
845 Harrington Court, Unit 3
Burlington Ontario L7N 3P3
Canada
289-288-6274
European Headquarters (Germany)
Maricann GmbH
Thierschstrasse 3, 80538 Munchen, Deutschland
The Canadian Securities Exchange has not reviewed, approved or disapproved the
content of this news release.