Vodis Pharmaceuticals Inc. (CSE:VP / FSE: 1JV1) (“Vodis” or the “Company”) is pleased to announce it has closed a non-brokered private placement of 4,000,000 units (each, a “Unit”) of the Company at a price of $0.40 for total gross proceeds of $1,600,000. Each Unit will comprise one common share and one transferable full share purchase warrant for two years from the date of issuance. In connection with this financing, the Company will not be paying any finders’ fees.
The majority of the proceeds of this private placement will be used to complete the final expansion of the Company’s facility in Bellingham, Washington, as announced on March 23, 2017.
In addition, Vodis announces it will be settling debt in an aggregate amount of $80,000 in exchange for the issuance of 200,000 common shares to related-party creditors. The debt settlements are based on a deemed price of $0.40 per common share.
The closing of the private placement and settlement of debt transactions remain subject to all requisite regulatory approvals. All securities to be issued in connection with the private placement and debt settlements will bear a four-month and one day hold period expiring August 19, 2017.
Ivan Miliovski, co-founder, Chief Executive Officer and Director of Vodis, commented, “This capital will accelerate the build out of our Tier 2 facility in Washington State, and allow our tenant to fully utilize their Tier 2 production license. This capital also serves as an endorsement of the Vodis model. As a Canadian company, the legal and operational challenges in establishing the Bellingham pilot project were enormous. Overcoming these challenges, while maximizing shareholder value, gives Vodis a competitive advantage as the Company begins to replicate and scale the business model and accelerate growth into the US market.”
Miliovski continues, “While the Company remains committed to the Canadian medicinal and future recreational market, we are proud to see world class, premium product carrying the Vodis USA logo on sale throughout Washington State.”
About Vodis Pharmaceuticals Inc.
Vodis is one of North America’s foremost brand names in the medical and recreational marijuana business with operations in both the United States and Canada. Its master grow teams have consistently won or placed at each competition they have entered with their “VIP” brand. The Company, with facilities in BC and Washington State, is also actively looking into expansion opportunities in other countries and states in the United States.
While Vodis Pharmaceuticals and its subsidiaries cannot have any interest whatsoever in any proceeds as a result of production, processing or retail activities in the United States, it can license its brand, production and consulting services to approved Washington State license holders to ensure that all products produced under the Vodis Pharmaceuticals program and/or associated under the VIP brand meet or exceed the Vodis brand quality standards.
Ivan Miliovski, CEO
Vodis Pharmaceuticals Inc.
For further information please contact:
Vodis Pharmaceuticals Inc.
8788 River Road
Delta, B.C. V4G 1B4
Certain information contained herein may constitute “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects” or “it is expected”, or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the use of proceeds of this financing. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that is incorporated by reference herein, except as required by applicable securities laws.
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.