BREAKING NEWS 80M Bought deal Newstrike completes $80-million bought deal 2018-02-16 09:25 ET - News Release Mr. Jay Wilgar reports NEWSTRIKE COMPLETES PREVIOUSLY ANNOUNCED $80 MILLION BOUGHT DEAL FINANCING Newstrike Resources Ltd. has closed its previously announced short form prospectus offering on a bought deal basis. A total of 60.61 million units of the company were sold at a price of $1.32 per unit, for aggregate gross proceeds of $80-million. The offering was underwritten by a syndicate of underwriters co-led by INFOR Financial Inc. and Cormark Securities Inc. and including Eight Capital and Haywood Securities Inc. "This transformational offering provides Newstrike and our wholly owned licensed producer, Up Cannabis, with the capital required to complete our Niagara facility, accelerate and enhance the national launch of the Up-Cannabis brand and seize select strategic opportunities that complement our growth strategy," said Jay Wilgar, Newstrike's chief executive officer. In addition, as previously announced, the company has granted the underwriters an overallotment option to purchase up to an additional 15 per cent of the units at the issue price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, an additional $12-million will be raised pursuant to the offering and the aggregate proceeds of the offering will be $92-million. Each unit comprises one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one additional common share at an exercise price of $1.75, for a period of 24 months following the closing of the offering. In the event that the volume weighted average trading price of the common shares for 10 consecutive trading days exceeds $2.60, the company shall have the right, subject to the approval of the TSX Venture Exchange, to accelerate the expiry date of the warrants upon not less than 15 trading days notice. The company has applied to list the warrants for trading on the TSX-V. "The endorsement of INFOR Financial, Cormark Securities, Eight Capital and Haywood Securities is a tremendous complement to our already strong shareholder base and an important demonstration of confidence from the capital markets," noted Scott Kelly, Newstrike's executive chair." We are grateful for the assistance and guidance of our legal team at Cassels Brock & Blackwell LLP and our auditors, DMCL LLP as well as the long-term support of PowerOne Capital, Primary Capital and CRM Global Capital." The company intends to use the proceeds of the offering to build-out its production facilities, for the retirement of certain debt obligations and for general, corporate and select strategic purposes. We seek Safe Harbor.