CanadaBis Capital Inc. (TSXV:CANB.P) (“CanadaBis” or the “Company”), an Alberta capital pool corporation listed on the TSX Venture Exchange, is pleased to announce that it has received conditional acceptance from the TSX Venture Exchange (“TSXV”) for its proposed qualifying transaction (the “Qualifying Transaction”) with 1926360 Alberta Ltd. doing business as Stigma Pharmaceuticals (“Stigma”). Stigma is a company that recently obtained its cultivation and processing licenses for cannabis and cannabis products with a facility located in Red Deer, Alberta (the “Facility”). Closing of the Qualifying Transaction is expected to occur on or about April 24, 2019. Upon closing, Stigma will amalgamate with a subsidiary of CanadaBis to become a wholly owned subsidiary of CanadaBis.

The Company filed a filing statement (the “Filing Statement”) dated April 1, 2019, regarding its Qualifying Transaction. Upon completion, the proposed transaction will constitute a “Qualifying Transaction” as defined in the policies of the TSXV and the resulting issuer will be a Tier 2 Life Sciences Issuer (the “Resulting Issuer”). Upon completion of the Qualifying Transaction, the Resulting Issuer will continue to operate under the name of “CanadaBis Capital Inc.”

The Company wishes to provide additional information regarding the Lease and Option to purchase the Facility dated April 1, 2019, as amended and restated (the “Lease”), entered into between Stigma’s operating subsidiary and a related party of Stigma. The lease has a five-year term, expiring in December 2023, with an option to renew for a further five year term. In addition, the agreement contains an option for the lessee to purchase the building for approximately $4.2 million, plus 5% interest per annum should the option be exercised after the first year of the lease. The Lease contemplates Stigma incurring all operating expenses for the Facility directly to the extent possible. The “rent” payable by Stigma under the Lease is equal to the expenses actually incurred by the Landlord as owner of the Facility and has been capped at a maximum of $10,000 per month. In addition, non-payment of rent under the Lease is only a default if not paid for 12 months following notice and a 60-day cure period.

The completion of the Qualifying Transaction is subject to a number of conditions, including but not limited to receipt of all required regulatory consents, including final TSXV acceptance.

Trading in the common shares of CanadaBis is currently halted and will resume following publication of the Final Exchange Bulletin by the TSXV in respect of the closing of the Qualifying Transaction.

Investors are cautioned that, except as disclosed in the Filing Statement, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative. There can be no assurance that the Qualifying Transaction will be completed as proposed or at all.

Please see the Filing Statement, which is available on SEDAR at, for more information regarding the Qualifying Transaction, Stigma and its business. The Company will issue additional news releases related to closing of the Qualifying Transaction and other material information as it becomes available.

Escrowed Securities

In accordance with the policies of the Exchange, an aggregate of 90,846,000 common shares in the capital of the Company (the “Escrowed Shares”) owned or controlled by directors, management, certain shareholders and incoming Principals of CanadaBis will be held pursuant to an escrow agreement with Computershare Trust Company of Canada, acting as escrow agent. Of these Escrowed Shares, 79,686,000 will be released from escrow based on the Exchange’s Surplus Escrow schedule as follows: 5% upon issuance of the Exchange bulletin granting final approval for the Transaction (the “Final Bulletin”); 5% on the date that is six months after the date of the Final Bulletin; 10% on the date that is 12 months after the date of the Final Bulletin; 10% on the date that is 18 months after the date of the Final Bulletin; 15% on the date that is 24 months after the date of the Final Bulletin; 15% on the date that is 30 months after the date of the Final Bulletin; and 40% on the date that is 36 months after the date of the Final Bulletin. In the Filing Statement, Mr. Michaud was shown incorrectly as being subject to Value Escrow, however he will in fact be subject to Surplus Escrow and his 1,325,000 shares are included in the numbers stated above. The remaining 11,160,000 Escrowed Shares are governed by the Value Escrow schedule (including the 3,000,000 governed by the initial CPC Escrow Agreement) and will be released from escrow as follows: 10% released upon receipt of final Exchange approval and a further fifteen percent (15%) released on each of the six-month, twelve-month, eighteen-month, twenty-four month, thirty month and thirty-six month anniversaries of the date of the Final Bulletin.

About Stigma

Stigma has developed a commercial “craft cannabis” grow facility located on land it purchased in the County of Red Deer. Stigma currently has 42 proprietary cannabis strains with a wide range of terpene and potency profiles. It holds a lease and option to purchase a 66,000sq ft facility located on its lands. The facility has currently been built out for 22,000sq ft of cultivation to meet demands of recreational cannabis, as well as medicinal consumption needs. The facility is currently set up for multiple grow rooms, drying rooms, a packaging and processing room, a shipping area and a secure product storage area.

Stigma recently received a Cultivation License and a Processing License for cannabis from Health Canada on March 6, 2019. “Phase 1” of the facility is designed to produce 1,500 kg per annum. “Phase 2” will involve the raising of additional capital and the investment in an expansion to approximately 16,000 kgs per annum. The founders of Stigma have invested over 2 years of research and development to determine optimal cannabinoid profiles and yield. Stigma currently has the ability to sell to other licensed producers throughout Canada, however, the Company has also applied for a Sales License. After successfully completing two test crops, the Sales License will enable Stigma to sell to Alberta Liquor Gaming & Cannabis (AGLC), which is the only Provincially authorized retailer in Alberta. Stigma looks to become one of the few vertically integrated craft companies in this market space.

All information contained in this news release with respect to CanadaBis and Stigma was supplied by the parties respectively for inclusion herein.

For further information, please contact:
Gregory Smith
Tel: (587) 356-5625

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.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

SOURCE: CanadaBis Capital Inc.


In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.

Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.

Keep reading... Show less

The Board of Directors of Aphria Unanimously Recommends Shareholders Vote “For” the Arrangement

Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination

Keep reading... Show less

Love Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and Hemp product suppliers, announces that as part of the equity fundraise announced yesterday, Antony Calamita and Andrew Male, Directors of the Company, subscribed for 285,714 Ordinary Shares and 1,428,571 Ordinary Shares respectively. The subscriptions are at a price of 3.5 pence per ordinary share for a total of £60,000. Following these subscriptions, Antony Calamita is now interested in 54,385,714 Ordinary Shares, representing 8.61% of the Company’s share capital as increased by the fundraising, and Andrew Male is now interested in 6,138,196 Ordinary Shares, representing 0.97% of the Company’s issued share capital as increased by the fundraising

Further, the timetable for receipt of applications under the Broker Option, which was also announced yesterday, has been extended until 5:00 pm 9 April 2021 to capture additional interest which was unable to be completed yesterday.

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, would like to provide the following dial-in information for the Company’s upcoming Annual and Special Meeting (the “Meeting”) scheduled to be held at 11:00 a.m. Eastern Daylight Time on April 12, 2021. Shareholders and proxyholders may access the Meeting via teleconference by dialing 647-723-3984 or 1-866-365-4406 from Canada or the United States, then entering participation code “8487744” followed by the pound (“#”) sign.

In consideration of the COVID-19 pandemic and the recent restrictions imposed by the Ontario Provincial Government, shareholders and proxyholders will only be able to attend the Meeting via teleconference and will not be permitted to attend the Meeting in person at the address provided on the Notice of Annual and Special Meeting of Shareholders.

Keep reading... Show less

Gage Growth Corp. (“Gage” or the “Company”) (CSE:GAGE), a leading high-quality craft cannabis brand and operator in Michigan, announced today that it has signed an agreement with Blue River™ Extracts & Terpenes (“Blue River™”) to bring the brand’s award-winning solventless technology and other trademark branded products to the state’s medical patients and cannabis consumers. The Company will have exclusive rights to Blue River™’s premium product offerings in Michigan.

Keep reading... Show less