Chinook Insiders are the largest investors in the Series A financing as its German subsidiary expands in the European medical cannabis industry
BERLIN, June 12, 2019 /CNW/ - Chinook Tyee Industry Limited ("Chinook") (TSXV: XCX), (Frankfurt: C4T, ISIN: CA16961T2083) completed its Series A non-brokered placement (Private Placement) of 10,000,000 Common Shares at a subscription price of $0.15 per Common Share (Common Shares), raising $1,500,000, which Chinook intends to use for working capital purposes. All securities issued pursuant to the Private Placement will be subject to a four-month hold period, which will expire on October 13, 2019.
"Our Series A financing was oversubscribed and we thank investors in Germany and Canada for their support," said Mr. Alex Blodgett, CEO of Chinook. "Chinook's insiders invested the maximum level allowed and are excited about developments ahead."
Chinook paid a cash finder's fee of $16,189.25 and issued 107,928 finder's warrants (each, a "Finder's Warrant") to PI Financial Corp., and paid a cash finder's fee of $19,845.00 and issued 132,300 Finders Warrants to General Research GmbH. Each Finder's Warrant entitles the holder thereof to acquire one additional Common Share at a price of $0.15 for a period of six months from the date of issuance.
The Private Placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions ("MI 61-101"), as insiders of Chinook subscribed for an aggregate of 2,536,842 Common Shares for gross proceeds of $380,526. Chinook is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Private Placement by insiders did not exceed 25% of the market capitalization of Chinook, as determined in accordance with MI 61-101. Chinook did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Private Placement as the details of the participation by related parties of Chinook were not settled until shortly prior to the closing of the Private Placement.
About Chinook Tyee Industry Limited
Chinook is a German managed investment company with two European subsidiaries, AMP Alternative Medical Products GmbH (AMP Germany) and Mercury Partners & Company plc. AMP Germany business is to import pharmaceutical grade (EU-GMP) cannabis produced by Canadian licensed producers into Germany. AMP Germany in cooperation with its business partners will provide EU-GMP audit, logistical, transportation, importation and other related services for the importation of medical cannabis into Germany. Mercury Partners & Company plc is a Malta based investment company.
For more information, please visit: www.amp-eu.com.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans and milestones and the timing thereof. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
SOURCE Chinook Tyee Industry Limited