#Cannabis Stock News: Abattis (CSE: $ATT.C) Successfully Closes $6.7 Million Private Placement and Announces New $6 Million Private Placement
Vancouver, British Columbia - January 5, 2018 (Newsfile Corp.) (Investorideas.com Newswire) Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) (the "Company" or "Abattis") is pleased to announce that, further to its news releases dated December 15 and December 19, 2017, it has completed the second and final tranche of its non-brokered private placement of units (each, a "Unit") for gross proceeds of $6.7 million (the "Private Placement").
"The Company continues to see overwhelming demand for its private placements," said Rob Abenante, President and CEO of Abattis. "In light of significant oversubscription from the previous round, the Company is pleased to be conducting another private placement in order to fill orders for strategic and loyal shareholders who have and continue to support the Company. The capital will further allow the Company to organically grow its existing business and execute strategic acquisitions in an effort to continue our rapid growth."
Closing of Second Tranche
In connection with the closing of the second tranche, the Company utilized its over-allotment provision and issued 6,310,048 Units at a price of $0.43 per Unit, for gross proceeds of $2,713,321. Each Unit consists of one common share of the Company (each, a "Share") and one half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"), with each Warrant entitling the holder to purchase an additional Share for a period of 36 months at an exercise price of $0.65, subject to acceleration in the event that the Shares trade above $0.75 for 10 consecutive trading days.
The Company raised a total of $6,713,320 and issued an aggregate of 15,612,371 Units for the entire Private Placement.
Announcement of New Private Placement of up to $6 million
Abattis is also pleased to announce that it is undertaking another non-brokered private placement (the "New Private Placement") for gross proceeds to the Company of up to $6 million.
The Company will issue up to an aggregate of 13,636,363 Units at a price of $0.44 per Unit. The Company reserves an over-allotment option to increase the New Private Placement by up to 15% (or up to $6,900,000). Each Unit will consist of one Share and one half of one Warrant. Each Warrant will be exercisable for one Share for a period of three years from the closing date of the New Private Placement at an exercise price of $0.65 per Share. In the event that the Shares trade at a price per Share on the Canadian Securities Exchange (the "Exchange") (or such other exchange on which the Shares may be traded at such time) of greater than $0.75 for a period of 10 consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration of the expiry date of the Warrants) and, in such case, the Warrants will expire on the thirtieth day after the date of such notice (the "Acceleration Provision").
Each purchaser under the New Private Placement will be required to complete a subscription agreement, which confirms, among other things, the availability of an exemption from the prospectus requirements of applicable securities laws in respect of the sale of Units to such purchaser. Eligible shareholders wishing to participate in the New Private Placement are invited to contact the Company to obtain a subscription agreement.
The Company intends to use the proceeds from the Private Placement and the New Private Placement to pursue strategic assets, expand its laboratory business, expand its extraction technology business, and for working capital and general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any Units, Shares or Warrants (collectively, the "Securities") in the United States. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Abattis Bioceuticals Corp.
Abattis is a life sciences and biotechnology company which aggregates, integrates, and invests in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biologics, nutraceutical, bioceutical, and cosmetic markets. The Company is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols, and adheres to the applicable laws of Canada and foreign jurisdictions. For more information, visit the Company's website at: www.abattis.com
ON BEHALF OF THE BOARD OF
ABATTIS BIOCEUTICALS CORP.,
Robert Abenante, President & CEO
For inquiries, please contact the Company at (604) 674-8232 or at email@example.com.
Certain information set out in this news release constitutes forward-looking information, which may include information relating to the size and completion of the New Private Placement and the proposed its use of proceeds from the New Private Placement. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate", or "will", and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Those factors include, but are not limited to statements regarding the expected size and completion of proceeds from the New Private Placement, the expected use of proceeds from the Private Placement and the New Private Placement, risks, uncertainties and other factors that are beyond the control of the Company, risks associated with the cannabis industry in general, rules and regulations relating to the cannabis industry, operational risks associated with development and production operations, delays or changes in plans and unanticipated costs and expenses, among others. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. In particular, there is no assurance that the private placement will close in the manner or on the terms outlined above. Although the Company believes that the expectations reflected in the forward-looking statements set out in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this news release are expressly qualified, in their entirety, by this cautionary statement. Except as required by law, we do not undertake to update any forward-looking statement contained in this news release.
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