Funding coincides with purchase of Farnham facility
MONTRÉAL, July 19, 2018 /CNW/ - Cannara Biotech Inc. ("Cannara" or the "Company") today announced that it has closed a $17.66 million common share funding round. The financing furthers Cannara's vision of creating one of the largest indoor medical cannabis growing facilities in North America. The proceeds will support the Phase 1 build-out at Cannara's Farnham facility, as well as fund additional expansion and product development.
"The success of our financing initiative, which included a number of key opinion leaders in the Cannabis industry, is a vote of confidence in our strategy of defining and developing the Cannara brand to be synonymous with the highest quality medical Cannabis," said Zohar Krivorot, President and CEO of Cannara. "We will continue to expand our production capacity with additional properties and select M&A activity. Product branding will play a prominent role in Cannara's growth in the Cannabis marketplace."
First Republic Capital was the sole broker for the offering. An existing Cannara shareholder, FSD Pharma's investment in this round reinforces their commitment to Cannara's strategic plan and their collaboration.
Cannara also announced it has appointed Lennie Ryer CPA, CA, CFE as CFO and Vice-President Finance. He will assist the Company in its transition from a development stage entity to a commercially successful company including leading all financing initiatives to further advance the Company's capital market strategy.
"The extensive experience Lennie brings to Cannara is well-aligned with our financial objectives. He has led the financial strategy of numerous public and private companies in the biotech sector as CFO, advisor and Board Director," said Zohar Krivorot. "Mr. Ryer will be an important member of the Cannara team as our financial profile changes and we transition to revenue growth."
Mr. Ryer previously held the position of Chief Financial Officer and Vice-President of Finance at ConjuChem Biotechnologies, where he designed and executed offerings in excess of $345 million. Mr. Ryer was also the CFO and VP Finance at Paladin Labs, a specialty pharmaceutical firm, from 1999-2001. While at Paladin, Mr. Ryer helped transitioned the company to the Toronto Stock Exchange and led the company's most significant financing initiative.
About Cannara Biotech Inc.
Cannara Biotech plans to operate the largest indoor medical cannabis cultivation facility in Quebec, a modern and secure 625,000 square foot facility located in Farnham, less than 45 minutes from downtown Montreal. Leveraging Quebec's low electricity costs, Cannara will produce high-grade indoor medical cannabis for Canadian and international markets. Working with partners from various industries, Cannara will generate licensing revenues, rental revenues and revenue streams from joint-venture arrangements leveraging this highly valuable property. For more information, visit our website: www.cannara.ca
Forward Looking Information
Except for historical information contained herein, the matters set forth above may include forward-looking statements that involve certain risks and uncertainties. Words such as "may", "could", "anticipate", "believe", "estimate", "expect", "intend", "plan", and similar expressions are used to identify forward-looking statements. These forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements. Cannara does not undertake any obligation to update any forward-looking statements and cautions investors to consider all other risks and uncertainties.
SOURCE Cannara Biotech Inc.