TCANNewsfile Corp TransCanna Announces $10.0M Brokered Private Placement 05/06/2019 9:07:00 AM Vancouver, British Columbia--(Newsfile Corp. - May 6, 2019) - Transcanna Holdings Inc. (CSE: TCAN) (FSE: TH8) ("TransCanna" or the "Company") is pleased to announce to announce that it has appointed Haywood Securities Inc. ("Haywood") to act as lead agent on behalf of a syndicate of agents to be formed (collectively, the "Agents") to sell, by way of a private placement on a best efforts basis, up to 2,000,000 units of the Company (each a "Unit") at a price of $5.00 per Unit (the "Issue Price") for gross proceeds of up to $10,000,000 (the "Offering"), subject to receipt of all applicable regulatory approvals. Each Unit will comprise one common share of the Company (each a "Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire an additional Share at a price of $6.00 for a period of 36 months from the date of closing of the Offering (the "Closing Date"). The Warrants will be subject to an acceleration clause that would require their exercise within thirty days of notice from the Company in the event that the price of the Shares closes at or above $10.00 for a period of 20 consecutive trading days. The Company has agreed to use commercially reasonable efforts to seek to have the Warrants listed on the Canadian Securities Exchange (the "CSE") immediately following the expiry of applicable resale restrictions, subject to meeting the distribution requirements of the CSE for such listing. The Company intends to use the net proceeds of the Offering for equipment and capital expenditures, additional acquisitions and for working capital and general corporate purposes. The Company will, upon the closing of the Offering: 1) pay the Agents a commission equal to 7.0% of the gross proceeds of the Offering, payable in cash or in Units at the discretion of the Agents; and 2) issue to the Agents compensation options (the "Compensation Options") equal to 7.0% of the Units sold, subject to compliance with all required regulatory approvals. The Compensation Options will entitle the Agent's to purchase Units at an exercise price per Compensation Option that is equal to the Issue Price and have a term of 36 months from the Closing Date. The Company will also pay to Haywood a corporate finance fee of $150,000 payable in cash. The Offering is expected to be completed on or before May 31, 2019, subject to the receipt of all necessary regulatory