MediPharm Labs Announces Increase to Bought Deal Equity Financing to $29 Million
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TORONTO, March 02, 2021 (GLOBE NEWSWIRE) -- MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE:MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven
pharmaceutical-quality cannabis extraction, distillation and derivative products, is pleased to announce that it has agreed to increase the size of its previously announced “bought deal” offering
of units of the Company (the “Units”) led by Cantor Fitzgerald Canada Corporation, as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively the
“Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 50,000,000 Units of the Company at a price of $0.58 per Unit for gross proceeds of
$29,000,000 (the “Offering”).
Each Unit will be comprised of one common share in the capital of the Company (a “Share”) and one Share purchase warrant (a “Warrant”). Each Warrant shall be exercisable to acquire one Share at an exercise price of $0.70 per Share (the “Exercise Price”) for a period of 24 months from the closing date of the Offering.
The Company has granted the Underwriters an option (the “Over Allotment Option”) to purchase up to an additional 7,500,000 Units, Shares or Warrants on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes.
The Units will be offered in all provinces of Canada, except Québec, pursuant to the Company’s short form base shelf prospectus dated February 24, 2021 (the “Base Shelf Prospectus”) and a prospectus supplement to be filed by MediPharm Labs, in the United States pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and applicable state securities laws, and such other jurisdictions as may be agreed to by MediPharm Labs and the Underwriters on a private placement basis. The Underwriters are to be paid a cash commission equal to 6% of the gross proceeds of the Offering (3.0% on president’s list investors).