GATINEAU, Quebec, May 24, 2018 (GLOBE NEWSWIRE) -- The Hydropothecary Corporation (“THCX” or the “Company”) (TSX-V:THCX) announced today that it has elected to exercise its right under the warrant indenture (the “Indenture”) governing the common share purchase warrants of the Company issued on November 24, 2017 (the “Warrants”) to accelerate the expiry date of the Warrants. Pursuant to the terms of the Indenture, the Company may accelerate the expiry date of the Warrants if, at any time prior to November 24, 2019, the closing trading price of the common shares of the Company (the “Common Shares”) on the TSX Venture Exchange (“TSX-V”) equals or exceeds $4.50 for a period of at least 10 consecutive trading days. As of the close of markets on May 23, 2018, the closing trading price of the Common Shares on the TSX-V exceeded $4.50 for more than 10 consecutive trading days.
Effective today, the expiry date for the Warrants is accelerated from November 24, 2019 to June 25, 2018. This news release constitutes notice to Warrant holders of the new expiry date. From and after 5:00 p.m. (Toronto time) on June 25, 2018, no Warrants may be exercised and all unexercised Warrants will be void and of no effect. Warrant holders who wish to exercise their Warrants should ensure that they allow sufficient time for delivery of their Warrants and the related exercise price funds to the warrant agent for the Warrants, including consulting with and instructing their investment advisors where they hold their Warrants through an investment advisor.
As of May 24, 2018, a total of 5,261,043 of the 15,663,000 originally issued Warrants had yet to be exercised. Each Warrant is exercisable to acquire one Common Share of the Company at an exercise price of $3.00. Consequently, if all Warrants are exercised, proceeds to the Company will total $15,783,129.
The accelerated expiry date for the Warrants also applies to 1,568,181 compensation warrants issued by the Company to certain investment banks on November 24, 2017, which have the same terms as the Warrants. As of May 24, 2018, a total of 298,037 of the compensation warrants had yet to be exercised. Consequently, if all compensation warrants are exercised, proceeds to the Company will total $894,111.
About The Hydropothecary Corporation
The Hydropothecary Corporation creates and distributes innovative, award-winning, easy to use, and easy to understand products under Health Canada’s Access to Cannabis for Medical Purposes Regulations. One of the country’s lowest-cost producers, Hydropothecary is rapidly increasing its production capacity in the lead-up to recreational adult-use cannabis. Hydropothecary will supply the recreational cannabis markets in Canada and elsewhere under its newly launched HEXO brand and will continue to serve medical cannabis clients under its original Hydropothecary brand.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investor Relations:
Jennifer Smith
Manager of Financial Reporting and Investor Relations
1-866-438-THCX (8429)
invest@THCX.com
www.THCX.com
Media Relations:
Alexandre Poirier
alexandre.poirier@thehydropothecary.com
Director
Adam Miron
819-639-5498