Pivot Completes C$1.64 Million Non-Brokered Private Placement

Strengthens Balance Sheet With Partial Debt Settlement

VANCOUVER, Oct. 22, 2018 /CNW/ - Pivot Pharmaceuticals Inc. (CSE: PVOT / OTCQB: PVOTF / FRA: NPAT) ("Pivot" or the "Company") is pleased to announce that it has closed a non-brokered Private Placement (the "Private Placement") for a total of C$1,641,300 and has also settled C$1,500,000 of outstanding debt with the issuance of common shares and share purchase warrant. Proceeds of the Private Placement will be used for general working capital purposes, capital expenditures and patent costs.

Private Placement

The Company issued 4,103,250 units ("Units") at a price of C$0.40 per Unit for gross proceeds of C$1,641,300. Each Unit consists of one common share ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant is exercisable for one Common Share for a period of three years from the date of issuance at an exercise price of C$0.60. The Common Shares and Warrants will be subject to resale restrictions for a period of four months and one day from the date of issuance.

In connection with the closing of the Private Placement, Hampton Securities Limited, Industrial Alliance Securities Inc., and certain other finders received an aggregate cash commission of $88,904 representing commissions of up to 8% of the gross proceeds raised by such finders, and 222,260 agent warrants, representing 8% of the gross number of Units raised.

Debt Settlement

The Company has settled C$1,500,000 principal amount ("Settlement Amount") of its outstanding 10% senior secured convertible debentures March 2, 2019 ("Debentures")  through the issuance of an aggregate 3,750,000 common shares of the Company ("Settlement Shares") at a deemed price of $0.40 per share and 3,750,000 common share purchase warrants ("Settlement Warrants"), together with an amount payable in cash equal to the interest that the Debenture holders would have received in respect of the Settlement Amount if it remained outstanding to maturity. Each warrant is exercisable for one common share of the Company for a period of three years from the date of issuance at an exercise price of C$0.60. The Settlement Shares and Settlement Warrants will be subject to resale restrictions for a period of four months from the date of issuance. As part of the satisfaction of the Settlement Amount, the conversion price of the remaining principal amount of the Debentures has been adjusted to C$0.42, being the closing price of the common shares of the Company on the Canadian Securities Exchange on the last trading preceding the date of the debt settlement.   

About Pivot Pharmaceuticals Inc.

Pivot Pharmaceuticals Inc. is a biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies. Pivot's wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. ("PGS" or "Pivot Green Stream"), conducts research, development and commercialization of cannabinoid-based nutraceuticals and pharmaceuticals. Pivot's wholly-owned U.S. subsidiary, Pivot Naturals, LLC, based in Costa Mesa, California, will manufacture and supply finished powderized cannabis products such as food additives, capsules, bulk powder and stick packs to the California market. PGS has acquired "RTIC" Ready-To-Infuse Cannabis oil-to-powder technology and Thrudermic Transdermal Nanotechnology (transdermal); acquired worldwide rights to BiPhasix™ Dermal Drug Delivery platform technology (topical), Solmic Solubilisation technology (oral), and Solumer™ Oral Drug Delivery technology; and an option to acquire worldwide rights to TriVair™ Nasal and Pulmonary Breath-Propelled Drug Delivery Systems™ for the delivery and commercialization of cannabinoid, cannabidiol (CBD), and tetrahydrocannabinol (THC)-based products. For more information please visit pivotpharma.com

Cautionary Note Regarding Forward-Looking Statements:

Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as anticipate, believe, estimate, expect, intend, and similar expressions, as they relate to Pivot Pharmaceuticals Inc., Pivot Green Stream Health Solutions Inc., Pivot Naturals, LLC, or its management, identify forward-looking statements. Such 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 as a result of certain factors, such as the failure to meet the conditions imposed by the CSE or other securities regulators, the level of business and consumer spending, the amount of sales of Pivot's products, statements with respect to internal expectations, the competitive environment within the industry, the ability of Pivot to continue to expand its operations, the level of costs incurred in connection with Pivot's expansion efforts, economic conditions in the industry, and the financial strength of Pivot's customers and suppliers. Pivot does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.

SOURCE Pivot Pharmaceuticals Inc.

Pivot Pharmaceuticals Inc., Patrick Frankham, PhD, MBA, Chief Executive Officer, Email: [email protected]; Virtus Advisory Group, Shareholder Inquiries, Email: [email protected], Phone: [phone]