/Not for distribution to United States newswire services or for
dissemination in the United
States/
TORONTO, Oct. 8, 2020 /CNW/ - Ontario: 48North
Cannabis Corp. ("48North" or the "Company") (TSXV: NRTH) is pleased
to announce that it has entered into an agreement with Cormark
Securities Inc. ("Cormark") pursuant to which Cormark has agreed,
on a best efforts private placement basis, to offer for sale up to
20,000,000 units (the "Units") of the Company at a price of
$0.15 per Unit for aggregate gross
proceeds of up to $3.0 million (the
"Offering").
Each Unit will be comprised of one common share (a "Common
Share") and one Common Share purchase warrant (a "Warrant"). Each
Warrant will entitle the holder to acquire one Common Share at a
price of $0.30, for a period of 30
months following the Closing Date (as defined below).
The completion of the funding agreement is expected to provide
the Company with additional working capital to help 48North to
become one of Canada's premier
consumer-centric cannabis companies.
"48North is laser-focused on becoming one of Canada's premier consumer-centric cannabis
company. Today's announcement lays the foundation for ongoing and
accelerated growth while reinforcing 48North's strength as a leader
in the Canadian cannabis market," said Charles Vennat, CEO of 48North.
The Company has also granted Cormark an option to purchase up to
an additional 15% of the Units sold under the Offering and shall be
exercisable, in whole or in part, until the time of closing on the
Closing Date (as defined below).
If, at any time, the volume-weighted average trading price of
the common shares of the Company on the TSX Venture Exchange
("TSXV") is equal to or greater than $0.45 for any 20 consecutive trading day period,
the Company may provide written notice (a "Warrant Acceleration
Notice") that the expiry of the Warrants shall be accelerated to a
date that is not less than 21 days from the date of such Warrant
Acceleration Notice, subject to TSXV approval.
The closing of the Offering (the "Closing Date") is to occur as
soon as practical in the content of the market on a date mutually
agreed upon by Cormark and the Company.
The Closing Date is subject to certain customary conditions,
including, but not limited to, the receipt of all necessary
approvals, including the approval of the TSXV and the applicable
securities regulatory authorities.
This press release does not constitute an offer of securities
for sale in the United States. The
securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933,
as amended, and such securities may not be offered or sold within
the United States absent
registration under U.S. federal and state securities laws or an
applicable exemption from such U.S. registration requirements.
About 48North
48North Cannabis Corp. (TSXV: NRTH) is a vertically integrated
cannabis company focused on manufacturing high-quality products,
building progressive and thought provoking brands, and low-cost
cultivation. 48North is developing formulations and manufacturing
capabilities for its own proprietary products, as well as
positioning itself to contract manufacture similar products for
third parties. 48North operates Good:Farm, a 100-acre organic
cannabis farm which produces organically-grown cannabis, securing a
significant first-mover advantage in the production of low-cost,
next-generation, extract-based cannabis products. In addition,
48North operates two indoor-licensed cannabis production sites in
Ontario. 48North cultivates unique
genetics at its wholly owned subsidiary, DelShen Therapeutics Corp.
("delshen") and processes cannabis and manufactures next-generation
cannabis products at Good & Green Corp. ("Good & Green"),
both Licensed Producers under the Cannabis Act.
DISCLAIMER & READER ADVISORY
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. Certain statements contained in this press release
constitute forward-looking information. These statements relate to
future events or future performance. The use of any of the words
"could," "intend," "expect," "believe," "will," "projected,"
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on the parties' current
beliefs or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. Please refer
to the Company's SEDAR filings for further details concerning the
risks associated with the Company's business. The forward-looking
information contained in this release is made as of the date hereof
and the parties are not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained herein.
Public health crises, including the ongoing novel coronavirus
(COVID-19) pandemic, could have significant economic and
geopolitical impacts that may adversely affect the Company's
business, financial condition and/or results of operations.
SOURCE 48North Cannabis Corp.