VANCOUVER, British Columbia, Jan. 19, 2018 (GLOBE NEWSWIRE) -- Quadron Cannatech Corporation (the “Company” or “Quadron”) – (CSE:QCC), is pleased to announce that it has closed the $5 million financing previously announced January 3rd, 2018. The Company issued an aggregate of 7,142,858 units (the “Units”) through PI Financial Corp. ("PI") as sole underwriter, at a price of $0.70 per Unit, for total gross proceeds of $5,000,000 (the "Offering"). Each Unit consists of one common share ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant is exercisable into one common share ("Warrant Share") at a price of $0.83 per Warrant Share, until January 18, 2020, subject to accelerated expiry in the event that the Company’s common shares close at a price of $1.50 or higher for 10 consecutive trading days, following the expiry of applicable hold periods. The Units, including all underlying securities thereof, have a hold period expiring May 19, 2018.
In connection with the Offering, the Company paid a cash commission of $300,000 and issued 428,571 broker warrants. Each broker warrant is exercisable into one Unit at $0.70 until January 18, 2019.
The Company intends to use the net proceeds of the Offering for general corporate purposes, to accelerate the manufacturing of extraction equipment for resale and for the purchase of ancillary products for resale.
Rosy Mondin, President and CEO of Quadron stated, “We continue to be encouraged and excited about the investor interest and growing demand for cannabis extracts and extract-based products. Quadron's recently unveiled BOSS C02 Extraction System is the most cutting edge C02 extractor available in the market, highlighted by its simplicity and plug and play design. Our team has identified an extremely large-scale market requiring modernized, more efficient and automated processes in the extraction business. This financing allows us to build out and deliver on the BOSS purchase orders as well as expedite our design and manufacturing of additional equipment to satisfy the demands of our clients who require cannabis extraction and processing laboratories.”
About Quadron: Quadron focuses on ancillary equipment, products and services for the authorized cannabis industry, providing automated extraction and processing solutions, and sales of end user delivery solutions such as vape pens, capsules and other safer consumption solutions for patients.
For more information, visit: www.quadroncannatech.com
On behalf of the Board of Directors of
QUADRON CANNATECH CORPORATION
Rosy Mondin
President and CEO
rosy@quadroncannatech.com
Investor Relations Contact:
KIN Communications Inc.
Caleb Jeffries, VP, Investor Relations
1-866-684-6730
QCC@kincommunications.com
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, including with respect to the scheduled closing date of the Offering and the intended use of the proceeds of the Offering, which are not historical in nature are intended to be, and are hereby identified as “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.