VANCOUVER, British Columbia, June 19, 2019 (GLOBE NEWSWIRE) — HEMPTOWN ORGANICS CORP. (“Hemptown” or the “Company“) is pleased to announce the Company has entered into an agreement with Canaccord Genuity Corp. (“Canaccord Genuity”) pursuant to which Canaccord Genuity has agreed to act as lead agent on behalf of a syndicate of investment dealers to be named (together with Canaccord Genuity, the “Agents”) in connection with a best efforts offering (the “Brokered Offering”) of units of the Company (the “Units”) at a price of CDN$2.25 per Unit, for gross proceeds of up to CDN$7,500,000.
Alongside the Brokered Offering, the Company is also undertaking a non-brokered offering (the “Non-Brokered Offering”) of up to an additional CDN$7,500,000 in Units on the same terms as the Brokered Offering.
Each Unit will consist of one common share (a “Unit Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant shall be exercisable to acquire one common share of the Company (a “Warrant Share”) at an exercise price of CDN$5.00 per Warrant Share for a period of 36 months from the closing date, subject to adjustment in certain events.
Commenting on the offering, John Cummings, CEO of Hemptown, stated, “Hemptown is positioned to become a vertically integrated company – from soil (over 1,500 acres of farm capacity) to oil (extraction and processing facilities) to shelf (manufacturing and distribution of branded and white-labelled products). In a burgeoning market expected to exceed $22 billion by 2020, the key to success is the ability to control the supply chain while developing superior market-ready products. This capital will position the company to do exactly that.”
Hemptown is presently positioned to be one of the largest producers of CBG in North America. CBG is the precursor to the main cannabinoids (THCA, CBDA, CBCA) and is commonly known as “The Mother of All Cannabinoids.” Hemptown is growing over 500 acres focused exclusively on these rare genetics and is projecting to be a key North American supplier of CBG by the end of 2019.
About Hemptown Organics Corp.
Hemptown is producing some of the finest cannabinoid products in the world. Following an impressive first year yield, the Company is scaling up its operation to meet domestic and international demand. With expansion of farmland, in-house extraction/processing facilities and a branded product line, Hemptown’s vertically integrated business model is well-positioned to capitalize on a global market expected to exceed $22 billion by 2020.