International Cannabrands Inc.
Under the Symbol:
International Cannabrands Announces Repricing of Brokered Financing Co-Led by Gravitas Securities and Canaccord Genuity
Thursday, November 1, 2018 9:00 AM
Not for Dissemination to United States Newswire Services or for Dissemination in the United States
CALGARY, AB / ACCESSWIRE / November 1, 2018 / International Cannabrands Inc. (CSE: JUJU) (the "Company") announces that, due to market conditions, it has reduced the price of its previously announced brokered private placement. Further to its press release dated October 11, 2018, the Company announced an engagement letter with Gravitas Securities Inc. ("Gravitas") and Canaccord Genuity Corp. (collectively, the "Agents") to offer up to 25,000,000 units of the Company (the "Units") at a price of $0.20 per Unit for gross proceeds of up to $5 million, with the option of the Agents to offer for sale up to an additional 25,000,000 Units for gross proceeds of up to another $5 million (collectively, the "Offering").
Up to 33,333,333 Units are now being offered at a price of $0.15 for gross proceeds up up to $5 million, with the option of the Agents to offer for sale up to an additional 33,333,333 Units for gross proceeds of up to another $5 million. Each Unit consists of one (1) common share in the capital of the Company (a "Common Share") and one-half (1/2) of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional Common Share at a price of $0.20 per share for a period of 36 months, subject to the ability of the Company to accelerate the expiry date at any time after a period of four (4) months, if, during the term of the Warrants, the volume weighted average closing price of the Common Shares on the Canadian Securities Exchange is greater than $0.375 for ten (10) consecutive trading days. The Common Shares and Warrants will bear a four month hold period from the date of issue.
Steve Gormley, CEO commented: "Due to market weakness in the cannabis sector generally, we feel this is a necessary move and are absolutely committed to complete this raise and aggressively pursue our business strategy."
It is anticipated that the net proceeds from the Offering will be used to fund the payment of US$700,000 due in connection with its acquisition of La Vida Verde, Inc. (see the Company's press release dated October 31, 2018), as well as other accretive acquisitions and for general corporate proposes.
The completion of the Offering is subject to, among other things, completion of satisfactory due diligence by the Agents, execution of an Agency Agreement between the Corporation and the Agents and regulatory approval.
About International Cannabrands (ICI)
The Company's business model is to generate revenue from cannabis cultivation, brands ranging from flower to edibles and from THC to CBD, oil extraction, ancillary products and apparel in the United States. ICI markets products with THC content where that practice has been legalized at the state level through either medicinal or full recreational use. ICI also markets products containing CBD in the US and internationally. ICI's strategy centers on acquiring micro brands, distribution and specific manufacturing/cultivation companies in the cannabis space. ICI has acquired the exclusive rights to Julian Marley's JuJu Royal™ brand. The Company believes as the legal cannabis market evolves, high-quality, unique products will increasingly capture market share and provide a valuable platform for growth.
About JuJu Royal
Julian Marley conveys his message of legalization, freedom, and love through the JuJu Royal brand, a line of naturally produced medicinal herbs. Our vision is to realize the opportunity to become one of the largest brands in the Marijuana industry. The synergy between the Rastafarian culture, music, natural products and an "Irie" experience is a powerful foundation for our business. JuJu's strategy is to develop and grow a complete cannabis line based on an international appeal to a millennial lifestyle seeking a luxurious and premium experience. JuJu will capitalize on the unparalleled opportunity to position itself with unique, innovative, high quality brands that meet and exceed our customer's expectations. More information about the brand and various products can be obtained at www.jujuroyal.net.
International Cannabrands Contact:
Chief Executive Officer
1045 Lincoln Street, #106
Denver, Colorado 80203
Ph: (323) 828-4321 or [email protected]
Media Inquiries: [email protected]
THIS PRESS RELEASE DOES NOT CONSTITUE AN OFFER TO SELL SECURITIES OR A SOLICITATION FOR PURCHASERS TO BUY SECURITIES. THIS PRESS RELEASE IS NOT TO BE CONSTRUED AS A PUBLIC OFFERING IN ANY PROVINCE IN CANADA UNLESS A PROSPECTUS RELATING THERETO HAS BEEN ACCEPTED FOR FILING BY A SECURITIES COMMISSION OR SIMILAR AUTHORITY IN SUCH PROVINCE.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of International Cannabrands Inc. in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any U.S. state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the United States Securities Act of 1933, as amended, and applicable state securities laws or unless an exemption from such registration is available.
Disclaimer concerning Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, the completion of the Offering, the completion of the acquisition by the Company of La Vida Verde Inc., and/or other accretive acquisitions as proposed or at all, the gross proceeds of the Offering, regulatory approval of the Offering and the use of the net proceeds, if any, of the Offering. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Additional risks and uncertainties regarding the Company are described in its publicly-available disclosure documents filed by the Company on SEDAR (www.sedar.com). The forward-looking statements contained in this news release represent the Company's expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
SOURCE: International Cannabrands Inc.