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Newstrike Resources Ltd
Symbol C : HIP
Shares Issued 483,539,185
Close 2018-06-13 C$ 0.67
Recent Sedar Documents

Newstrike files final prospectus for $45M financing

2018-06-13 11:42 ET - News Release

Mr. Jay Wilgar reports

NEWSTRIKE ANNOUNCES THE FILING OF ITS FINAL PROSPECTUS

Newstrike Resources Ltd. has filed its final short form prospectus in connection with the previously announced $45-million bought deal financing involving a syndicate of underwriters being co-led by Cormark Securities Inc. and Infor Financial Inc. as joint bookrunners and including Haywood Securities Inc. and Eight Capital.

Under the terms of the offering, the underwriters have agreed to purchase 60 million units from the treasury of the company at a price of 75 cents per unit and offer them to the public by way of short form prospectus for total gross proceeds of approximately $45-million. Each unit will consist of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder thereof to purchase one common share at a price equal to $1 for a period of 60 months following the closing of the offering.

The net proceeds of the offering shall be used for strategic growth initiatives (both investments and acquisitions) as well as general corporate purposes.

The units to be issued under the offering will be offered in each of the provinces of Canada, except Quebec.

The closing of the offering is expected to occur on or about June 14, 2018, and is subject to regulatory approval, including that of the TSX Venture Exchange.

The company also announces that it has recently refiled the following: condensed consolidated interim financial statements for the three-month period ended March 31, 2017; condensed consolidated interim financial statements and related management discussion and analysis for the three-month period ended March 31, 2018; and annual management discussion and analysis for the year ended Dec. 31, 2017, filed on April 26, 2018. The interim financial reports have been amended to correct errors in the original interim financial statements and MD&A. A convertible debenture has been reclassified from non-current liabilities to the equity portion of convertible debt as of March 31, 2017. Certain line items in the statement of comprehensive loss for the three-month period ended March 31, 2017, have been reclassified according to the nature of these expenses. Non-cash transactions included in the statement of cash flows for the three-month period ended March 31, 2017, have been removed from the cash flows. The MD&A has been amended as of June 8, 2018, to reflect a restatement of the originally filed MD&A. The MD&A is being restated to file the correct version of the MD&A. An incorrect version was filed on SEDAR due to a clerical error. The changes to the MD&A filed for the year ended Dec. 31, 2017, relate primarily to the classification of line items in the statements of financial position as of Dec. 31, 2016, and in the statements of comprehensive loss pertaining to the year ended Dec. 31, 2016.

The changes have no impact on the audited consolidated financial statements for the years ended Dec. 31, 2017, and Dec. 31, 2016, and the unaudited condensed interim consolidated financial statements for the period ended March 31, 2018. Therefore, the amendments have no impact on the company's cash flow position as of Dec. 31, 2017, Dec. 31, 2016, and March 31, 2018.

About Newstrike Resources Ltd.

Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Up Cannabis is in turn the parent company of Up Cannabis Niagara Inc. Newstrike, through Up Cannabis and together with select strategic partners, including Canada's iconic musicians The Tragically Hip, is developing a diverse network of high-quality cannabis brands.

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