NAPANEE, Ontario, Sept. 18, 2017 (GLOBE NEWSWIRE) -- ABcann Global Corporation (TSX-V:ABCN) (“ABcann” or the “Company”) is pleased to announce that it has received total proceeds of $11,895,298 from the exercise of an aggregate of 19,185,965 warrants since the closing of the Company’s acquisition of ABcann Medicinals Inc. (“ABcann Medicinals”) on April 28, 2017. These warrants, each of which was exercised into one ABcann common share, expired on September 9, 2017. They were originally issued under private placements completed by ABcann Medicinals in 2014 and 2015. After giving effect to the exercise of the warrants, ABcann’s current cash position stands at approximately $45 million, providing the Company with the capital necessary to expand its production.
“ABcann thanks our shareholders for their continued support and confidence as we work toward expanding our facilities and increasing production. Our strong financial position, represented by our current cash position is earmarked for new construction and will facilitate the timely execution of our business plan,” said director and CEO, Aaron Keay. “The Company’s main focus in the coming months will be on the deployment of capital towards the expansion of our existing Vanluven facility and development and construction of the new Kimmett facility, as well as the pursuit of our international expansion plans.”
None of the shares issued on exercise of the warrants have been, or will be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any State where such offer, solicitation, or sale would be unlawful.
About ABcann Global:
ABcann was one of the first companies to obtain a production license under the Marijuana for Medical Purposes Regulations, which it received in March 2014. The Company obtained its sales license in December 2015. ABcann’s flagship facility in Napanee, Ontario contains proprietary plant-growing technology, including environmentally-controlled chambers capable of monitoring and regulating all variables in the growing process. This approach and the systems in place allow ABcann to produce organically grown and pesticide-free, high-yielding plants, which, in turn, can generate high-quality products that are consistent from batch to batch. ABcann is able to control environmental and nutrient demands, tailor-made for a particular strain of cannabis, without the variation that is typical when producing large quantities in less-controlled, larger rooms and greenhouse-type structures. ABcann’s modular approach to systems technology eliminates scale-up risk and enables ABcann to expand anywhere in the world and maintain consistency and quality of product.
ABcann is expanding capacity in its current facility to approximately 30,000 sq ft and concurrently undertaking its expansion into a new 150,000 sq ft facility in Napanee. ABcann is pursuing opportunities in Germany, Australia, Israel and other jurisdictions as well as exploring the development of multiple delivery vehicles.
ON BEHALF OF THE BOARD OF DIRECTORS
For further information, please contact Aaron Keay by email at aaron@ABcannglobal.com, or Leo Karabelas by phone at 416 543-3120 or by email at leo.k@ABcannglobal.com
Neither 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.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which are statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to: the Company’s expected use of proceeds obtained from the exercise of the warrants; its growth strategy and plans to expand production capacity and sales; and its proposed expansion and development plans both in Napanee and internationally. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including: (i) that ABcann may not be able to substantially expand its production capacity; (ii) that ABcann may not be able to meet its aggressive construction and expansion timelines at its Napanee facilities; (iii) that the $60 million in funds ABcann expects to obtain for construction of the Kimmett facility will not be received; (iv) that ABcann may not be able to increase the sales of its premium, organically grown, pesticide free cannabis products in the current domestic market or internationally; (v) that ABcann may not be able to distribute globally in the emerging markets it has targeted; (vi) that ABcann may experience delays or obstacles in pursuing its growth strategy; (vii) regulatory risks; (viii) that ABcann may not be able to serve larger and broader markets as a result of its production increase; and (ix) other factors beyond the Company’s control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors, and the more extensive risk factors included in the Company’s filing statement dated March 31, 2017 and MD&A for the three and six months ended June 30, 2017, which are available on SEDAR, carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements in this news release are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.