Radient Technologies Inc. Receives License Amendment from Health Canada for its Edmonton II Facility and Closes First Tranche of its Previously Announced Debenture Financing

EDMONTON, Alberta, March 04, 2020 (GLOBE NEWSWIRE) -- Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture: RTI; OTCQX: RDDTF), a global commercial manufacturer of high quality cannabinoid-based ingredients, formulations and products, is pleased to announce that Health Canada has approved the Company’s application to amend its existing Standard Processors License to include its Edmonton II facility for the processing of cannabis materials.

Radient’s Edmonton II Facility (“Edmonton II”), which the Company has retrofitted to accommodate the extraction and downstream processing of CBD from hemp, was designed to process both cannabis and hemp materials to produce high quality cannabinoid extracts. Edmonton II also gives the Company manufacturing capacity to accelerate the development of white label ‘Cannabis 2.0’ products. A portion of the facility will be used to manufacture high quality cannabis end products for Radient’s clients, representing another important milestone in expanding the Company’s product offerings. Following a commissioning phase, the Edmonton II facility is expected to begin commercial operations in the second half of calendar 2020.

Closing of First Tranche of Debenture Financing:

Radient also announces today that further to its announcement dated February 10, 2020, the Company has closed the initial tranche (the “Initial Tranche”) of its previously announced debenture financing of up to CAD$5 million of unsecured debentures (the “Debentures”).

Pursuant to the Initial Tranche, Radient has issued Debentures for a principal amount of CAD$1,162,500. The Debentures are unsecured and have an interest rate of 15% per annum. The Debentures will mature on March 3, 2022 (the “Maturity Date”). The Company has issued to the Debenture holders 581,250 non-transferable common share purchase warrants (the “Bonus Warrants”). Each Bonus Warrant has a 24 month term and is exercisable into one common share of the Company at an exercise price of CAD $0.70 per share (each a “Bonus Share”). All Bonus Shares will be subject to a hold period expiring on July 4, 2020 in accordance with applicable securities laws.

The Company plans to use the proceeds from Initial Tranche for general working capital purposes.

An aggregate of $125,000 of the Debentures were purchased by Denis Taschuk, the President and CEO of the Company and an aggregate of $400,000 of the Debentures were purchased by Mr. Yves Gougoux, a Director of the Company. The issuance of the Debentures and the Bonus Warrants to Mr. Taschuk and Mr. Gougoux constitutes a “related party transaction” under Multilateral Instrument 61-101 - Protection of Minority Holders in Special Transactions (“MI 61-101”). The Company is relying, however, on an exemption from the valuation and minority voting requirements of MI 61-101.