Aleafia Health Inc. (ALEAF)

[oatsuzn]

Canabo Medical Inc. Announces Financing Syndicate for $20 Million Offering in Conjunction with the Aleafia Inc Business Combination

https://www.canabomedicalclinic.com/canabo-medical-inc-announces-financing-syndicate-20-million-offering-conjunction-aleafia-inc-business-combination/

Halifax, Nova Scotia, December 29, 2017 – Further to press release disseminated on December 22, 2017, Canabo Medical Inc. (TSXV: CMM) (“Canabo” or the “Company”) in conjunction with Aleafia Inc, “Aleafia”) is pleased to announce the participants of the syndicate (the “Syndicate”) as described in the earlier business combination release.

The Offering will consist of Mackie Research as co-lead agent with Canaccord Genuity Corp.. Clarus Securities and Power One Capital Markets Ltd. are also participating in the syndicate.

Concurrently with the proposed business combination transaction described in the December 22, 2017 release, Aleafia intends to complete a brokered private placement of subscription receipts (“Subscription Receipts”) on a ‘best efforts’ basis for gross proceeds of approximately $20,000,000 (the “Aleafia Private Placement”) at an offering price of $1.25 per Subscription Receipt. The Agents (as defined below) will have the option exercisable any time up to 24 hours prior to the closing of the Offering to increase the size of the Aleafia Private Placement by up to 15% (the “Over-Allotment Option”), for a total of up to $23,000,000. Each Subscription Receipt will, following the completion of the Aleafia Private Placement, and the satisfaction of certain escrow release conditions, entitle the holder to receive, without payment of additional consideration or taking of further action, one (1) unit consisting of (1) common share and one half of one common share purchase warrant in the capital of the Resulting Issuer. Each whole warrant is exercisable into one (1) common share in the Resulting Issuer at a price of $1.75 for 18 months following issuance.