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/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES ./
Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (" Hollister " or the " Company ") is pleased to announce, further to its news releases of January 21, 2021 and January 20, 2021 that the Company has now closed the brokered private placement of 21,635,094 Special Warrants of the Company (the " Special Warrants ") at a price of $0.365 per Special Warrant and raised gross proceeds of 7,896,809.31 (the " Offering "), including 3,825,094 Special Warrants sold pursuant to the exercise in full of the agents' option granted to the Agents (as defined herein).
Eight Capital acted as sole bookrunner and lead agent, on behalf of a syndicate of agents including Haywood Securities Inc. and Paradigm Capital Inc. (together with Eight Capital, the " Agents ") under the Offering.
Each Special Warrant will be automatically exercisable into units of the Company (the " Units "), as described below. Each Unit consists of one common share of the Company (a " Share ") and one-half of one common share purchase warrant (each full warrant, a " Warrant "). Each Warrant will entitle the holder thereof to acquire one Share at a price of $0.50 per Share on or before January 2, 2025 , being 46 months following the date of closing of the Offering (the " Closing Date ").
Each Special Warrant will be automatically exercisable, for no additional consideration, into Units on the date (the " Automatic Exercise Date ") that is the earlier of: (i) the date that is three business days following the date on which the Company either (A) obtains a receipt from the applicable securities regulatory authorities (the " Securities Commissions ") for a (final) short form prospectus qualifying distribution of the Units underlying the Special Warrants (the " Qualifying Prospectus "); or (B) files a supplement to a (final) short form base shelf prospectus qualifying the distribution of the Units underlying the Special Warrants (the " Qualifying Supplement "), and (ii) July 3, 2021 , being the date that is four months and one day after the closing of the Offering.
Notwithstanding the foregoing, in the event the Company has not received a receipt from the Securities Commissions for the Qualifying Prospectus or filed a Qualifying Supplement on or before March 12, 2021 , each holder of Special Warrants shall thereafter be entitled to acquire an additional one-half of one (0.5) Warrant for each Unit to be issued to such holder upon the automatic exercise of the Special Warrants, such that each Unit shall be comprised of one Share and one whole Warrant (collectively, the " Penalty Warrants "), without further payment or action on the part of the holder.
In connection with the Offering, the Company paid the Agents $651,084.20 in commissions and advisory fees and issued 1,441,580 special broker warrants (the " Special Broker Warrants ") to the Agents. Each Special Broker Warrant is automatically exercisable into one broker warrant (a " Broker Warrant ") for no additional payment on the Automatic Exercise Date. Each Broker Warrant will be exercisable into one Unit, subject to adjustment, at $0.365 per Unit for a period of 24 months from the closing of the Offering. Each Unit is comprised of one Share and one-half of one Warrant.
All securities issued in connection with the Offering are subject to a statutory hold period of four months plus a day in accordance with applicable securities legislation ending on July 3 , 2021. The net proceeds received from the Offering will be used for working capital and general corporate purposes.
About Hollister Biosiences Inc.
Hollister Biosciences Inc. is a multi-state cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality cannabis & hemp products. Hollister uses a high margin model, controlling the whole process from manufacture to sales to distribution or seed to shelf. Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products, and full-spectrum high CBD pet tinctures. Hollister Cannabis Co. additionally offers white-labeling manufacturing of cannabis products. Our wholly-owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA birthplace of the "American Biker".
Website: www.hollistercannabisco.com
The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
Forward-Looking Information: This news release includes certain statements that may be deemed "forward-looking statements". The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forwardlooking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile onwww.sedar.com
SOURCE Hollister Biosciences Inc.
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