DELTA 9 CANNABIS INC. (TSXV: NINE) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. pursuant to which the Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 7,410,000 units at a price of $2.70 per Unit for aggregate gross proceeds to the Company of $20,007,000.
Each Unit will consist of one common share of the Company and one Common Share purchase warrant. Each Warrant will be exercisable to acquire one Common Share for a period of 30 months following the closing of the Offering at an exercise price of $3.25 per Warrant Share.
The Company has granted the Underwriter an option (the "Over-Allotment Option"), to purchase up to an additional 1,111,500 Units at a price of C$2.70 per Unit, exercisable at any time, for a period of 30 days after and including the Closing Date. The Over-Allotment Option is exercisable to acquire Units, Common Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriter.
The net proceeds of the Offering will be used to for expansion capital expenditures and general corporate purposes.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on December 28, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
About Delta 9 Cannabis Inc.
Delta 9's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical marijuana pursuant to the ACMPR and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9's shares trade on the TSX Venture Exchange under the symbol "NINE".
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