Dr. Patrick Frankham reports
PIVOT PHARMA ANNOUNCES C$15 MILLION PRIVATE PLACEMENT AND STRATEGIC PARTNERSHIP
Pivot Pharmaceuticals Inc. has signed a binding letter of intent, dated April 8, 2019, with High Park Ventures Inc. (HPK), a private investment company, for a non-brokered private placement of $15-million. The private placement will be of units at a price of 25 cents per unit, with each unit consisting of one common share and one common share purchase warrant having a term of two years and an exercise price of 35 cents. The private placement is expected to close in two tranches, with the first closing of $5-million within two weeks and the second tranche of $10-million closing within four weeks. Upon completion of the non-brokered private placement, Pivot will issue 60 million units to HPK. Completion of the private placement is conditional on HPK satisfactorily completing its due diligence investigation, and High Park Ventures and Pivot entering into an advisory agreement, pursuant to which High Park Ventures will provide Pivot with strategic advice.
High Park Ventures is a private investment company with a focus on U.S. investments. High Park Ventures' chairman is renowned entrepreneur Joe Mimran. Upon completion of the closing, Mr. Mimran will join Pivot's advisory committee and provide strategic advice to Pivot. Mr. Mimran is the co-founder and chairman of Gibraltar and Company, and is an internationally recognized brand and retail concept visionary known for brands such as Joe Fresh and Club Monaco. Krisztian Toth, the chief executive officer of High Park Ventures, will join the board of Pivot on the closing date. The High Park Ventures team previously founded NettaGrowth International Inc., which, through Dormul SA, obtained the first licence to produce medical cannabis with tetrahydrocannabinol for commercialization in Uruguay. NettaGrowth was sold to Khiron Life Sciences Corp. on Jan. 25, 2019.
Dr. Patrick Frankham, Pivot's chief executive officer, commented: "We are thrilled to welcome Joe Mimran to Pivot's advisory committee and receive the investment from High Park Ventures. With the investment and support provided by the High Park Ventures team, we are able to implement and accelerate our initiatives. I would also like to welcome Krisztian Toth to Pivot's board of directors. The experience and track record of the High Park Ventures team will greatly benefit Pivot's management team as we commercialize our industry-leading biocannabis product line."
Mr. Toth commented, "We are excited to work with the Pivot team and assist them with the development, commercialization and branding of premium-quality, cannabinoid-based nutraceuticals and pharmaceuticals, and leveraging the worldwide rights of their patented drug delivery technologies."
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals is a science-based consumer packaged goods cannabis company engaged in the development and commercialization of health and wellness products using innovative, patent-protected drug delivery technologies. Upon receipt of a standard processor licence (pending) from Health Canada, Pivot's premium, bioavailable, stable and effective products will be manufactured at its 50,000-square-foot current good manufacturing practice facility located in Montreal, Que.
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