GATINEAU, QC, Dec. 22, 2016 /CNW/ - The Hydropothecary Corporation (the "Company") is pleased to announce the signing of a definitive business combination agreement with BFK Capital Corp. whereby BFK will acquire all of the securities of THC by way of a three-cornered amalgamation and THC will continue its business as a public company, subject to the terms and conditions of the Agreement (the "Proposed Transaction"), as well as the closing of a $13.1 million brokered private placement (the "Financing").
Under the Financing, the Company has issued an aggregate of 2,919,507 common shares at a price of $4.50 for gross proceeds of $13,137,781.50. Canaccord Genuity Corp. acted as agent for the Financing and received a cash commission of $803,487. Canaccord also received 178,552 common share warrants with an exercise price of $4.50 per common share which expire two years from the date of the Company closing the Proposed Transaction.
"We were very pleased with the investor reception and demand for our equity offering and would like to thank them for their overwhelming support." said Sebastien St-Louis, President and CEO. "This capital will allow us to develop our new resin manufacturing facility as part of our innovation platform, expand our glass roof greenhouses and install additional infrastructure for our recreational cultivation centre."
Further details about the Proposed Transaction and the resulting issuer will be provided in the filing statement of BFK to be prepared and filed in respect of the Proposed Transaction. Except as disclosed in the filing statement, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.
THC, through its wholly-owned subsidiary, 167151 Canada Inc., is licensed under the Access to Cannabis for Medical Purposes Regulations to cultivate and sell marijuana seeds and plants and dried marijuana product and to produce marijuana oils, marijuana resins and fresh marijuana products. THC's facilities are located in Gatineau, Québec.
SOURCE The Hydropothecary
For further information: please visit www.hydropothecary.ca or contact: Sebastien St-Louis, (613) 293-4515