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, explains 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.
Several directors, officers and other insiders as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61-101), participated in the Private Placement, either directly or indirectly, and First Republic Capital Corporation, an exempt market dealer of which Richard Goldstein, the CFO and a director of the Company, is also a significant shareholder and the President, received a portion of the Cash Finder's Fees and Finder's Warrants in connection with the Private Placement, therefore the Private Placement constitutes a related party transaction within the meaning of MI 61-101. In its consideration and approval of the Private Placement, the board of directors of the Company determined that the Private Placement is exempt from the formal valuation and minority approval requirements of MI 61-101 on the basis that the fair market value of the Private Placement, including the Cash Finder's Fees and Finder's Warrants paid to First Republic Capital Corporation, to related parties does not exceed 25% of the market capitalization of the Company, in accordance with Sections 5.5 and 5.7 of MI 61-101. The Company did not file a material change report more than 21 days before the closing of the Private Placement as the details of the Private Placement, and the confirmation of insider participation in the Private Placement, was not definitively known to the Company until the date of the closing of the Private Placement and the board of directors determined that it was in the best interests of the Company to close the Private Placement as soon as practicable.
TORONTO
Canntab Therapeutics Limited (CSE:PILL.CN)(OTCQB:CTABF) (FRA:TBF1.F) (the Company or Canntab), the leading innovator in cannabinoid and terpene blends in hard pill form for therapeutic applications, is pleased to announce that on Friday, February 28th, 2020 it successfully received its Cannabis Standard Processing and 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 USD 3,080,000.
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