Stillcanna Acquires Polish Hemp Producer and Receives the Proceeds of Its $24,365,000 Financing
Vancouver, British Columbia--(Newsfile Corp. - May 7, 2019) - STILLCANNA INC. (CSE: STIL) ("StillCanna" or the "Company") the Company is pleased to announce that further to the Company's press release dated March 18, 2019, the Company successfully acquired 100% of Olimax's issued and outstanding shares.
The acquisition of Olimax provides Stillcanna with a vertically integrated licensed cultivator, extractor and formulator of CBD. One of Olimax's many core strengths is its agriculture expertise with hemp.
The founders of Olimax Zofia Valber and Krystyna Bojeck have taken on the roles of VP Operations Poland and will oversee the day-to-day management of the Company's Polish operations. With over 40 years combined experience in hemp products, their accomplishments include a patented microelement fertilizer and the germination and registration of an EU certified propriety varietal of high CBD content hemp. Zofia and Krystyna have decades of hemp production and product formulations along with degrees in agriculture and chemistry.
The Company is seeding its 1500 hectares of land in Poland with the Company's proprietary hemp varietal and expects its harvest to be in early August.
"This acquisition uniquely positions Stillcanna in the supply chain of wholesale CBD in Europe," pointed out Jason Dussault Chief Executive Officer of StillCanna, "there is global interest in sourcing a reliable flow of wholesale CBD in Europe and StillCanna is now in a position to address that global interest."
The purchase price of Olimax consists of 24,000,000 common shares and $2,000,000 in cash. 20,064,000 of the 24,000,000 shares are subject to a contractual restriction on trading whereby 1/12 of the shares will be released from such contractual restriction every three months from the date of issuance and all of the shares are subject to a four-month and a day hold period from the date of issuance, in accordance with applicable Canadian securities laws.
As previously announced on April 25, 2019, the Company completed a financing of an aggregate of 21,187,587 subscription receipts at a price of $1.15 per subscription receipt for aggregate gross proceeds of approximately $24,365,000 with Canaccord Genuity Corp. as agent. The net proceeds of the financing were released to the Company in connection with the satisfaction of the escrow release conditions by the Company through its successful acquisition of Olimax. The subscription receipts automatically converted into one common share of the Company and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one common share for a period of 12 months at an exercise price of $1.73.
The Company intends to use the net proceeds of the Offering to expand its CBD processing capacity at the Company's facility in Romania, to build out Olimax's CBD extraction facility and agricultural capabilities in Poland along with working capital and general corporate expenditures.
In connection with the acquisition of Olimax, the Company issued 450,000 common shares to certain finders. It also issued 700,000 common shares to certain consultants in exchange for financial advisory services.
ABOUT STILLCANNA INC.
StillCanna Inc. (CSE: STIL) (www.stillcanna.com) is a Canadian early-stage life sciences company focused on large-scale CBD extraction in Europe. Based on a proprietary process and intellectual property, the Company is forecasted to be one of the lowest-cost CBD extractors operating in Europe. The Company has signed an extraction contract to be the exclusive extractor for Dragonfly BioSciences LLC, a United Kingdom-based supplier of CBD. With the completion of the Olimax Transaction, StillCanna is one of the leading processors and providers of market-ready CBD in Europe.
On Behalf of the Board,
Chief Financial Officer and Director
The CSE has not in any way passed upon the merits of and has neither approved nor disapproved the contents of this news release.
Cautionary Note Regarding Forward Looking Statements: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the expected harvest date of the Company's 1,500 hectares of land being in early August. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should" or "would" occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that the cultivation of the Company's hemp will be successful and the harvest date of the Company's 1,500 hectares of land will be in early August as anticipated by management of the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, that the cultivation of the Company's hemp will not be successful or will be delayed and the harvest date of the Company's 1,500 hectares of land will not be in early August or at all. Readers are cautioned not to place undue reliance on forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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