Canntab Therapeutics Limited, an innovator in cannabinoid and terpene blends in hard pill form for therapeutic applications, announced that on Friday, February 28, 2020 it successfully received its Cannabis Standard Processing & Sales for Medical Purposes Licences from Health Canada, and that it has closed the first tranche (the “First Tranche”) of its non-brokered private placement offering (the “Private Placement”) for total gross proceeds of $3,080,000.
“With the licensing and financing, we are now in a position to move into full scale manufacturing and distribution of our next generation of biopharmaceutical cannabinoid solutions. We plan to roll-out new brands and products for sale, starting this summer,” said Jeff Renwick, Chief Executive Officer at Canntab. “Canntab intends to be the first to bring timed-release cannabinoid hard pills to market in Canada,” concludes Mr. Renwick.
Closing of First Tranche
The Private Placement was previously announced on February 6, 2020. Pursuant to the closing of the First Tranche, Canntab has issued 6,160,000 units of the Company (“Units”) at a price of $0.50 per Unit for gross proceeds of $3,080,000. Each Unit consists of one common share (a “Common Share”) and one full warrant (a “Warrant”) to acquire an additional common share at a price of $0.75 per share until February 28th, 2022. The Company anticipates closing an additional tranche of the Private Placement to raise total gross proceeds of up to $4,000,000.
In connection with the Private Placement, the Company paid commissions to a syndicate of registrants that were comprised of cash finder’s fees of $113,260 (“Cash Finder’s Fees”) and issued 226,520 finder’s warrants (“Finder’s Warrants”). The Finder’s Warrants each entitle the holder thereof to purchase one Common Share at a price of $0.50 for a period of 24 months.