International Cannabrands Comments on Market Activity and Announces Completion of Non-brokered Private Placement
Calgary, Alberta (FSCwire) - International Cannabrands Inc. (CSE: JUJU.A) (the Company), is responding to a request from the Investment Industry Regulatory Organization of Canada on behalf of the Canadian Securities Exchange (the CSE), following the trading activity occurring today in its common shares. While the Company continues to aggressively pursue its business plan, the Company is not aware of any corporate developments or other reason for the recent market activity and has no material undisclosed information.
The Company will continue to update the investment community on its corporate developments as information is available and in accordance with applicable securities laws and regulatory policies.
Further to the Company’s December filings with the CSE, the Company would like to update the market on a non-brokered private placement completed by the Company, consisting of units (the Offering). Each unit consisted of one (1) common share of the Company and one-half (1/2) common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.18, at any time within 12 months after closing of the Offering, subject to the right of the Company to accelerate the expiry date. If during the term of the warrants the volume weighted average closing price of the common shares on the CSE is $0.25 or more for 10 consecutive trading days, then the Company has the right, by providing notice to holders of warrants, to accelerate the expiry date of the warrants to that date which is 30 days from the date of the notice.
The Company issued an aggregate of 3,554,295 common shares and 1,777,143 warrants to 20 subscribers in two closing held on December 29, 2017 and January 5, 2018 for gross proceeds of $462,058. The Company ceased accepting any new subscriptions following the January 5, 2018 closing, however, due to the timing of receipt of documentation and funds, pending receipt thereof, a final closing is expected to be held on Wednesday January 9, 2018, with 5 additional subscribers for the issuance of 2,894,295 units ($376,258). Assuming the completion of the final closing on January 9, 2018, the Company will have issued an aggregate of 6,448,590 common shares and 3,224,289 warrants for gross proceeds of $838,316. The common shares and warrants bear a four-month hold period from the closing date, which expire April 30, 2018, May 6, 2017, May 10, 2018, respectively.
In addition, the Company issued stock options to purchase 4,250,000 common shares to officers, directors and service providers at a price of $0.35 per share and options to purchase 250,000 common shares at a price of $0.46 per share. All options vest over a three year period with one-third vesting on the first anniversary of the grant date, on one-third over the next two years.
For additional information, please refer to the Company’s filings on CSE at www.thecse.com.