CALGARY, AB, July 20, 2020 /PRNewswire/ - MagicMed Industries Inc. ("MagicMed" or the "Company") is pleased to announce that it has engaged Mackie Research Capital Corporation (the "Agent") to sell, by way of a private placement on a best efforts basis, up to 6,000,000 common shares in the capital of the Company ("Common Shares") at a price of $0.25 per Common Share for gross proceeds of up to $1,500,000 (the "Offering").
The Company intends to use the net proceeds from the Offering to expand the Company's scientific team, to continue development of intellectual property surrounding the Company's PsybraryTM of psychedelic derivative molecules and for working capital and general corporate purposes.
The Common Shares to be issued under the Offering will be offered by way of private placement in all of the provinces of Canada and such other jurisdictions as the Company and the Agent may agree, pursuant to exemptions from the prospectus requirements under applicable securities laws.
The closing of the Offering is expected to occur on or about August 14, 2020 or such other date as the Company and the Agent may agree. All securities issued in connection with the Offering will be subject to resale restrictions in accordance with applicable securities laws.
The Company has agreed to pay the Agent, upon closing of the Offering, a cash commission equal to 8.0% of the aggregate gross proceeds of the Offering in addition to a work fee and certain expenses of the Agent.
MagicMed Industries intends to partner with pharmaceutical and other companies to develop psychedelic-derived medicinal and licit consumer goods products. MagicMed's molecular derivatives library, the PsybraryTM is anticipated to be an essential building block from which industry can develop new patented products. The initial focus of the PsybraryTM is on psilocybin, and is expected to be opportunistically expanded to other psychedelics like MDMA, ketamine, Ibogaine, Mescaline, and Ayahuasca. For more information, please visit our website at www.magicmedindustries.com.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. All statements other than statements of present or historical fact are forward-looking statements, including statements with respect to the Offering (including the projected terms and closing date of the Offering), MagicMed's future business plans and partnerships, the anticipated uses of MagicMed's patents and the development of the PsybraryTM. Forward-looking statements include words or expressions such as "proposed", "anticipated", "will", "subject to", "near future", "in the event", "would", "expect", "prepared to" and other similar words or expressions.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements which include, but are not limited to: the ability of MagicMed to secure patent protection; the ability of MagicMed to enter into partnership agreements or other arrangements; unforeseen challenges in carrying out the business plans of MagicMed; trends in the future use of psilocybin; general business, economic, competitive, political and social uncertainties; the state of capital markets; risks relating to general economic, market and business conditions; and other unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We disclaim any obligation to update or revise these forward-looking statements, except as required by applicable law.