Zola Global Investors Ltd. Announces Acquisition of Units of Cansortium Inc.

TORONTO, Ontario, May 23, 2019 /CNW/ - Zola Global Investors Ltd. ("Zola") announced today that it has acquired 9,095 units of Cansortium Inc. (CSE: TIUM.U) ("Cansortium") in a brokered private placement at a price of US$1,000 per Unit for gross proceeds of US$9,095,000 (the "Offering"). Each unit consists of: (a) a senior secured convertible debenture (collectively, the "Debentures") having a principal amount of US$1,000, convertible for a period of two years at the holder's option into common shares of Cansortium at a price of US$2.10 per common share (subject to adjustment in certain circumstances); and (b) 292 common share purchase warrants, each of which entitles the holder to acquire one common share at an exercise price of US$2.40 per common share (subject to adjustment in certain circumstances) at any time prior to March 21, 2021.

Prior to the Offering, Zola had beneficial ownership of, or control or direction over, 3,187,500 common shares and 1,593,750 warrants to acquire an equivalent number of common shares at an exercise price of US$2.40 per common share (subject to adjustment in certain circumstances) at any time prior to March 22, 2021 issued in connection with Cansortium's initial public offering. After giving effect to the Offering and the issuance of the units, and assuming the conversion of all of the debentures and warrants held by Zola, Zola has beneficial ownership of, or control or direction over, 11,767,942 common shares, representing approximately 14.6% of the issued and outstanding common shares. This represents approximately 6.1% of the total votes attached to all of the issued and outstanding voting securities of Cansortium by virtue of Cansortium's proportionate voting shares, which entitle the holders thereof to 10 votes for each share held.

Zola is acquiring the units for investment purposes. Depending on market conditions and other factors, including Cansortium's business and financial condition, Zola may acquire additional securities of Cansortium or dispose of some or all of the securities of Cansortium that it owns at such time.

An early warning report in respect of the Offering will be filed by Zola under Cansortium's profile on SEDAR at www.sedar.com and will be available by contacting Dennis Fong at [phone].  Zola is located at 3076 Sir Francis Drake's Highway, Road Town, Tortola, British Virgin Islands and Cansortium's head office is located at 82 Northeast 26th Street, Miami, Florida  33137.

Zola is an operationally focused family office that deploys capital to help management teams build lasting and sustainable businesses, primarily in the legal cannabis industry globally. Zola invests across the sector, with a focus on intellectual property, including brands, technology, value-added products and defensible positions in the supply chain.

SOURCE Zola Global Investors Ltd.

contact Dennis Fong at [phone]