NR - INCREASE TO BD - UGHThe "U" curve will take longer now to get back.
TORONTO, ONTARIO--(Marketwired - Aug. 8, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Mettrum Health Corp. ("Mettrum" or the "Company"), (TSX VENTURE:MT), a vertically integrated provider of cannabis products, is pleased to announce that further to its press release on August 8, 2016, the Company and Cormark Securities Inc. (the "Lead Underwriter"), on behalf of a syndicate of underwriters including Mackie Research Capital Corporation, GMP Securities L.P., Clarus Securities Inc., Dundee Securities Ltd., Echelon Wealth Partners Inc. and PI Financial Corp. (together with the Lead Underwriter, the "Underwriters") have agreed to increase the size of its previously announced $10,001,100 "bought deal" offering. Pursuant to the upsized deal terms, the Underwriters have agreed to purchase, on a "bought deal basis" 5,661,000 common shares ("Shares") from the treasury of the Company, at a price of $2.65 per Share (the "Offering Price") for aggregate gross proceeds of $15,001,650 (the "Offering").
The Company has granted the Underwriters an option ("Over-Allotment Option"), exercisable in whole or in part, to purchase up to an additional 849,150 Shares from the treasury of the Company at the Offering Price exercisable at any time on or up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any. In the event that the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering shall be $17,251,898.
Closing of the Offering is expected to occur on or about August 26, 2016 (the "Closing") and is subject to regulatory approval including that of the TSX Venture Exchange.
The Shares to be issued under the Offering will be offered by way of a short form prospectus in each of the provinces of Canada, except Qubec.
The Underwriters will receive a cash commission of 6.0% of the gross proceeds raised in the Offering.
This news 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 U.S. registration or an applicable exemption from U.S. registration requirements.