Hoshi International Inc., a European Focused Medical Cannabis Company Completes Series A Financing

CAD $18.5mm in total funding to be put towards EU-GMP facilities in Portugal and Malta

August 24, 2021 3:00 AM EDT | Source: Hoshi International Inc.

Toronto, Ontario--(Newsfile Corp. - August 24, 2021) - Hoshi International Inc. ("Hoshi" or the "Company"), a European focused vertically integrated cannabis producer has successfully completed their Series A equity financing of approximately €5,000,000 at an issuance price of €0.6341 per common share (including the exercise of 1,868,696 warrants to purchase common shares for gross proceeds of CAD $560,608.80) (the "Offering"). Hoshi was founded by a group of highly experienced Canadian cannabis entrepreneurs, who have operated, and successfully scaled medical cannabis operations in a highly regulated environment.

The Company intends to use the gross proceeds of the Offering to build-out Phase 1 of Hoshi's state of the art, EU-compliant GACP and GMP cultivation, postproduction, and processing facility in Portugal, and an EU-GMP processing and manufacturing facility in Malta (the "Facilities"). Hoshi successfully applied for both Portugal 2020 and Malta Enterprise grant programs and received approximately €3,500,000 in grant capital, along with €4,000,000 in bank financing from a Tier 1 Portuguese bank. With this financing in place, Hoshi looks to complete construction of the Facilities and become unconditionally licensed in both jurisdictions.

"The completion of our Series A round is a critical step forward in advancing our long-term objectives," said John B. Aird, CEO of Hoshi International. "We trust in our experience to execute on our defined strategy of becoming a primary provider of EU GMP flower and derivative products throughout Europe."

The Offering saw participation from two key strategic investors Flora Growth Corp. (NASDAQ: FLGC) and Green Acre Capital.

"I believe our experienced management team and advisors have an exceptional track record in both operating and scaling cannabis businesses in highly regulated environments, and this experience ultimately made the difference in attracting strong strategic partners," stated Aird. "Hoshi is now well positioned to become a market leader in the cultivation and distribution of medical cannabis throughout the European Union."

"Flora Growth is a strong believer in backing talented teams with proven track records, strong business acumen and an ability to move rapidly in this fast moving cannabis industry, Hoshi is the embodiment of those principles," said Luis Merchan, CEO of Flora Growth. "Flora Growth is excited to become a supplier and partner to the Hoshi team as we work together to bring our biomass and brands to the EU market through Hoshi."

About Hoshi International Inc.

Hoshi is a European focused, fully integrated medical cannabis company led by a team of renowned cannabis entrepreneurs. Hoshi is focused on developing and operationalizing assets across the global cannabis industry with an emphasis on cultivating, manufacturing, and distributing cannabis products throughout the EU. Hoshi is uniquely positioned to become a leading provider of cannabis and derivative products for the emerging European market.

Investor Relations Contact:
Harrison Newlands
hnewlands@hoshiint.com
www.hoshiint.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information in this news release includes, but is not limited to, statements in respect of the use of proceeds of the Offering, construction of the Facilities and the ability of the Company to obtain certain licences.

Forward-looking statements are based on the opinions and estimates of management of the Company at the date the statements are made based on information then available to the Company. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements Forward-looking statements are subject to and involve a number of known and unknown variables, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in exchange rates; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.

No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/94139

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