TORONTO, April 19, 2018 /CNW/ - Xanthic Biopharma Inc. (formerly Aurquest Resources Inc.) ("Xanthic" or the "Company") (CSE: xTHC) is pleased to announce it has closed the first tranche of the previously announced non-brokered private placement for 1,112,000 units (the "Units") at a price of $0.50 per Unit to raise aggregate gross proceeds of $556,000 (the "Private Placement"). Each Unit will be comprised of one common share (a "Common Share") in the capital of Xanthic and one-half of one (1/2) common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.75 per Common Share for a period of 24 months from the closing date of the Private Placement. Due to considerable demand, the Company has increased the size of the Private Placement to 4,000,000 Units, with the first tranche closing today and further tranches to follow.
In connection with the Private Placement, Xanthic paid to certain finders an aggregate finder's fee of $18,000 and an aggregate of 24,000 compensation options, having the same attributes as the Units. The securities issued pursuant to the Private Placement will be subject to a four month and one day statutory hold period from the date of issuance in accordance with applicable securities legislation.
Xanthic intends to use the net proceeds from the Private Placement for general working capital purposes.
Further information regarding the Company is set forth in the Company's listing statement, a copy of which is available under the Company's SEDAR profile at www.sedar.com.
Xanthic, through its wholly-owned operating subsidiary, Xanthic Biopharma Limited, provides valuable intellectual property to cannabis industry participants, enabling its strategic partners to produce high quality, innovative, non-combustible cannabis, and cannabis-infused products which deliver consistent THC and/or CBD levels. Using a proprietary process, Xanthic allows its strategic partners to deliver superior cannabinoid solubility and consistency versus competitive infused products.
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the word "will" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law. The Canadian Securities Exchange has neither reviewed nor approved the contents of this press release.
SOURCE Xanthic BioPharma