Dr. Patrick Frankham reports
PIVOT PHARMA CLOSES FINAL TRANCHE OF OVERSUBSCRIBED C$15 MILLION PRIVATE PLACEMENT
Pivot Pharmaceuticals Inc. has closed the final tranche of its oversubscribed non-brokered private placement, previously announced on April 9, 2019, by issuing 13,868,000 units at a price of 25 cents per unit for gross proceeds of $3,467,000.
Pivot will use the remaining proceeds from the non-brokered private placement to execute on product manufacturing, distribution and sales beginning in the European Union, where regulations permit. Further, Pivot will use the proceeds to commence operations in Montreal, Canada, where it is working with Health Canada to obtain its standard processor and medical sales licences.
Concurrently with the closing of the offering, Joe Mimran and Dr. Kenneth Kessler joined the advisory board of Pivot and Krisztian Toth joined the board of directors of Pivot as executive chairman and Dr. Joseph Borovsky will serve as the lead director.
Pivot's chief executive officer, Dr. Patrick Frankham, stated: "Closing this final tranche of the private placement allows Pivot to execute and accelerate on its business strategy. With this financing, we are aiming to be operational in three key markets, including the European Union, Canada and California. Our objective is to fully realize the potential of our large portfolio of patented, science-based consumer cannabis products. Last week we announced the initiation of production of 100,000 units our first product, a Micelle CBD oral solution, to be distributed and sold in the EU. We will look to complete the sales of this product and ramp up production in order to expand our footprint via best-in-class medical cannabis distributors in the region and look to launch a second and third product in the near term." Dr. Frankham added: "I am delighted to have closed this financing with an investor group that has a very successful track record of creating value across product and service industries. Their input and participation in advisory capacities and guidance in the capital markets, consumer products, branding, medical clinics and the emerging cannabis market will be critical to the success of Pivot and accelerate our path to revenue."
The securities issued pursuant to the offering are subject to a four-month hold period under applicable securities laws, which hold period expires four months and a day following the date of issue of the units.
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 cyclic good manufacturing practice facility located in Montreal, Que.
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