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TORONTO, Sept. 20, 2018 (GLOBE NEWSWIRE) -- Canada House Wellness Group Inc. (CSE: CHV) (“Canada House” or the “Company”) is pleased to announce the Company has secured a draw-down equity facility of up to $25,000,000 with Alumina Partners, LLC, a New York-based private equity firm. Alumina has previously made many substantial investments in the cannabis space and completed extensive due diligence on Canada House before proposing this institutional investment.
Proceeds from this financing will be used to accelerate Canada House’s growth in the medical cannabis industry, including the addition of new patients, the completion of its indoor grow facility, the expected expansion to its indoor grow facility and the pursuit of other production opportunities.
Chris Churchill-Smith, Canada House CEO states, “As one of the leaders in the medical cannabis sector, this financing provides Canada House with the financial flexibility needed to accelerate the execution of our business plan of growing our patient base and continuing to advance towards the sale of our premium quality production, resulting in higher margins and a clear path to profitability. Having been selected by Alumina not only speaks to the quality of our management team and underlying operations in both the production of medical grade cannabis and industry leading clinic service offerings to our patient base, it also validates our strategy and pursuit of being the industry leader in the medical cannabis sector in Canada. We are very pleased to announce this news and are looking forward to a strong and healthy working relationship with Alumina as we look to provide value to our shareholders.”
“Through extensive due diligence and close study of the Canadian regulated cannabis landscape, we were only able to identify a few licensed producers with the deep talent pool and proven track record to credibly execute on business plans in the clinical cannabis and cannabinoid space,” explained Adi Nahmani, the Managing Member of Alumina Partners. “We feel that Canada House currently leads the league in this regard through their work with veterans on medical use and their multidisciplinary focus on whole-patient treatment, evidence-based medical research and data science. We are delighted to invest in their continued leadership in this vital work as clinical applications of the science of cannabis rapidly evolve and multiply.”
The agreement details the purchase of up to $25,000,000 of units of the Company (the “Units”), consisting of one common share (the “Shares”) and one common share purchase warrant (the “Warrants”), at discounts ranging from 15% to 25% of the market price of the Shares, with each Private Placement Offering occurring exclusively at the option of the Company, throughout the 24 month term of the agreement. The exercise price of the Warrants will be at a 50% premium over the market price of the Shares, unless such premium would result in an exercise price of less than $0.30, in which instance the exercise price for the Warrants issued in such tranche will be $0.30. There are no upfront fees or interest associated with the use of this financing.
As well, Canada House’s Board is pleased to announce the immediate granting of 400,000 stock options, pursuant to the Company’s stock option plan, consisting of 200,000 options to the President and 200,000 to the Vice President of Knalysis Technologies. These stock options vest 50% based on the completion of certain proprietary software and 50% six months thereafter based on its satisfactory performance of the software.
Canada House Wellness Group Inc.
Canada House is an experienced, integrated medical cannabis company providing patient-specific cannabinoid therapy products and services through its clinics and licensed producer. Canada House is the parent company of Marijuana for Trauma Inc., Knalysis Technologies and Abba Medix Corp. For more information please visit http://www.canadahouse.ca or www.sedar.com.
For further information, please contact:
Boom Capital Markets
Steve Low
647-620-5101
steve@boomcapitalmarkets.com
Canada House Wellness Group Inc.
Chris Churchill-Smith
CEO
514-313-0102
chris.smith@canadahouse.ca
Cautionary Statement Regarding Forward Looking Information. Certain statements within this news release pertaining to the Company may constitute “forward looking statements”, within the meaning of applicable securities laws. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “plans,” or other similar words. Such forward-looking statements involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.