TORONTO, June 27, 2017 /CNW/ - The Hydropothecary
Corporation ("THCX" or the "Company") (TSX VENTURE:THCX) announced
today that it has entered into a revised agreement with Canaccord
Genuity Corp. and a syndicate of underwriters (the "Underwriters")
to increase the size of its previously announced bought deal,
private placement of convertible debenture units to $25,000,000.
As previously announced, each convertible debenture unit will
consist of $1,000 principal amount of
8.0% senior unsecured convertible debentures of the Company (the
"Convertible Debentures") and 313 common share purchase warrants
(the "Warrants") of the Company (the "Offering"). The
Convertible Debentures will bear interest from the date of closing
at 8.0% per annum, payable semi-annually on June 30 and December
31 of each year and will mature on June 30, 2019 (the "Maturity Date"). The
Convertible Debentures will be convertible at the option of the
holder into common shares of the Company at any time prior to the
close of business on the Maturity Date at a conversion price of
$1.60 per share (the "Conversion
Price"). Beginning on the date that is four months and one day
following the closing date, the Company may force the conversion of
all of the principal amount of the then outstanding Convertible
Debentures at the Conversion Price on 30 days prior written notice
should the daily volume weighted average trading price of the
common shares of the Company be greater than $2.25 for any 15 consecutive trading days.
Each Warrant will be exercisable to acquire one common share of
the Company for a period of two years following the closing date of
the Offering at an exercise price of $2.00 per share, subject to adjustment in certain
events, and subject to the Company's right to accelerate expiry of
the Warrants if, beginning on the date that is four months and one
day following the closing date, the closing trading price of the
common shares of the Company equals or exceeds $3.00 for any 15 consecutive trading days.
The Underwriters continue to hold an option to purchase up to an
additional $5,000,000 of convertible
debenture units under the Offering.
The Company intends to use the net proceeds of the Offering for
expansion of its production facility in Gatineau, Québec and for working capital and
general corporate purposes. Closing of the Offering is expected to
occur on or about July 13,
2017. The Offering is subject to certain conditions
including, but not limited to, the receipt of all necessary
regulatory and stock exchange approvals, including the approval of
the TSX Venture Exchange.
About The Hydropothecary Corporation
The Hydropothecary Corporation is an authorized licensed
producer and distributor of medical cannabis licensed by Health
Canada under the Access to Cannabis for Medical Purposes
Regulations (Canada).
Hydropothecary provides naturally grown and rigorously tested
medical cannabis of uncompromising quality. Hydropothecary's
branding, cannabis product offering, patient service standards and
product pricing are consistent with THCX's positioning as a premium
brand for a legal source for medical cannabis within this new
marketplace. In addition to medical cannabis production and sales,
Hydropothecary explores various research and development
opportunities for cannabinoid extracts, drugs and combinatory
chemistry. In addition, the company is investigating the
development and patenting of novel technologies related to medical
cannabis, as well as the import and export of medical cannabis.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE The Hydropothecary Corporation