DionyMed Holdings Inc. Announces C$25 Million Brokered Private Placement Led By Canaccord Genuity Corp.

Published: September 19, 2018

DionyMed Holdings Inc. Announces C$25 Million Brokered Private Placement Led By Canaccord Genuity Corp.

DionyMed Holdings Inc., a rapidly-growing multi-state cannabis brand and distribution platform, is pleased to announce that it has entered into an agreement with a syndicate of agents led by Canaccord Genuity Corp. and including Cormark Securities Inc. and Beacon Securities Limited, to sell on a commercially reasonable efforts private placement basis, that number of subscription receipts at a price to be determined in the range of C$4.00 to C$4.50 per Subscription Receipt for aggregate gross proceeds of up to C$25,000,000. The Issue Price range was selected based on a fully-diluted in-the-money enterprise value of approximately C$260 million to C$300 million.

Edward Fields, DionyMed Chairman and CEO commented, “We’re pleased to partner with the leading cannabis investment bank, Canaccord Genuity, and syndicate members Cormark Securities and Beacon Securities on this milestone financing, expanding our resources and team to bring award-winning cannabis products to market. Completion of the Offering will provide DionyMed with the necessary capital to continue to grow the Company’s footprint in California and Oregon and execute on our expansion initiatives across the United States. We believe in the future of cannabis and a world where cannabis is always in stock.”

Each Subscription Receipt shall entitle the holder thereof to receive, upon satisfaction of certain escrow release conditions, and without payment of additional consideration, one common share (a “Common Share”) and one common share purchase warrant (a “Warrant”) exercisable into one Common Share at price that is 50% greater than the Issue Price for a period of 24 months from the date the escrow release conditions are satisfied. Should the conditions not be satisfied, the Subscription Receipts will be cancelled and all proceeds from the sale of Subscription Receipts will be returned to subscribers.

Closing of the Offering is expected to occur on or about October 15, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the securities regulatory authorities. Pursuant to the terms of the Offering, the Agents have been granted an option to arrange for the sale of up C$10,000,000 of additional Subscription Receipts, which option is exercisable by the Agents at any time prior to the Closing Date.

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