Mr. Jonathan Gilbert reports
SCYTHIAN BIOSCIENCES ANNOUNCES CLOSING OF $28.7 MILLION FINANCING WITH APHRIA INC. AS LEAD INVESTOR
Scythian Biosciences Corp. has closed its previously announced bought deal short form prospectus offering, including the full exercise of the overallotment option.
A total of 772,943 units of the company were sold at a price of $18.60 per unit for gross proceeds of $14.37-million. The offering was completed by a syndicate of underwriters led by Clarus Securities Inc. as lead underwriter and sole bookrunner, and including Haywood Securities Inc. and INFOR Financial Inc. Each unit comprises one common share of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share of the company at a price of $22.00 for a period of 24 months following the date hereof. The units were offered and sold in the provinces of British Columbia, Alberta and Ontario.
In connection with the offering, the company also issued and sold on a concurrent bought deal brokered private placement of 672,125 units for resale to Aphria Inc. on the same terms and conditions as the offering for gross proceeds of $12.5-million. In addition, the underwriters exercised, in full, an option under the concurrent private placement to acquire an additional 100,818 units for additional gross proceeds of $1.87-million for resale to additional subscribers on an exempt basis. The combined gross proceeds from the offering and the concurrent private placement was $28.75-million. The concurrent private placement was also led by Clarus Securities Inc., as lead underwriter and sole bookrunner on behalf of the underwriters. The units and underlying securities issued and issuable under the concurrent private placement are subject to a statutory four-month hold period ending on June 14, 2018.
In consideration for their services, the underwriters received a cash commission equal to 7 per cent of the gross proceeds of the combined offering and concurrent private placement and compensation options equal to 7 per cent of the units sold pursuant to the offering and concurrent private placement. Each compensation option is exercisable into one unit at the issue price until Feb. 13, 2020. The compensation options attributable to the concurrent private placement are subject to a statutory four-month hold period ending on June 14, 2018.
The net proceeds of the offering and concurrent private placement are expected to be used by Scythian for continued research with the University of Miami, general corporate purposes and potential acquisitions in the cannabis space.
The completion of the offering and the concurrent private placement are subject to final acceptance of the TSX Venture Exchange.
About Scythian Biosciences Corp.
Scythian is a research and development company committed to finding a solution for the prevention and treatment of concussions and traumatic brain injury with its proprietary cannabinoid combination.
Scythian's mission is to be the first accepted drug regimen for concussion treatment. Scythian has recently formed a collaboration with the University of Miami and its world renowned neuroscientific team to conduct preclinical and clinical trials of its drug regimen.
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