Marapharm Ventures Inc., (“Marapharm” or the “Company”) is pleased to announce that it has completed the fifth and final tranche of the private placement (the “Fifth Tranche”) of common share purchase warrants of the Company (the “Warrants”) at $0.10 per warrant for gross proceeds of approximately $632,307 from the sale of 6,323,076 warrants. Each warrant is exercisable into one common share of the Company (each, a “Share”) at $2.90 per Share for a period of 36 months from the date of issuance.
The aggregate gross proceeds raised from the Warrant series is approximately $4,229,612 from the sales of 42,296,123 warrants.
The Company is also pleased to announce, further to its news releases dated December 8, 2017 and January 24, 2018, that it has completed the brokered private placement (the “Offering”) of units (the “Units”) of the Company with Emerging Equities Inc. (the “Agent”) for gross proceeds of approximately $2.9 million.
Each Unit comprises one Share and one Share purchase warrant of the Company (each “Unit Warrant”). Each Unit Warrant entitles the holder thereof to purchase one Share at an exercise price of $1.25 at any time up to 12 months following the date of issuance. The expiry date of the Unit Warrants is subject to acceleration such that if following the closing of the Offering, the volume weighted average closing price of the Shares on the Canadian Securities Exchange (the “CSE”) equal to or exceed $1.72 for 20 consecutive trading days, at which time the Company may accelerate the expiry date of the Unit Warrants.
In connection with the Offering, the Company paid the Agent a cash fee of approximately $296,175. Additionally, the Company issued 344,390 Share purchase warrants to the Agent (the “Agent’s Warrants”), with each Agent’s Warrant entitling the holder thereof to purchase one Share at an exercise price of $0.87 for a period of 14 months following the date of issuance.
The Company intends to use the net proceeds from the Fifth Tranche and the Offering for general corporate purposes.
All securities issued in connection with the above offerings are subject to a four month hold period.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities issued, or to be issued, under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
“As we enter our first revenue-producing year, we appreciate the continued support of our shareholders”, Linda Sampson CEO.
ABOUT MARAPHARM VENTURES INC.
Marapharm is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Marapharm has rapidly expanded to include having cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California, and are seeking expansion opportunities worldwide.
Marapharm trades in Canada, ticker symbol MDM on the CSE, in the United States, ticker symbol MRPHF on the OTCQB, and in Europe, ticker symbol 2Mo on the FSE. Marapharm also trades on other recognized platforms in Europe including Stuttgart, Tradegate, L & S, Quotnx, Dusseldorf, Munich, and Berlin.
Neither the CSE, the FSE nor the OTCQB® has approved nor disapproved the contents of this press release. Neither the CSE, the FSE nor the OTCQB® accepts responsibility for the adequacy or accuracy of this release.
MARIJUANA INDUSTRY INVOLVEMENT:
Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate.
Marapharm owns marijuana licenses in California and Nevada. Marijuana is legal in each state however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Marapharm’s ability to access private and public capital could be affected and or could not be available to support continuing operations. Marapharm’s business is conducted in a manner consistent with state law and is in compliance with licensing requirements.
Copies of licenses are posted on Marapharm’s website. Marapharm has internal compliance procedures in place and has compliance focused attorneys engaged in jurisdictions to monitor changes in laws for compliance with US federal and state law on an ongoing basis. These law firms inform any necessary changes to our policies and procedures for compliance in Canada and the US.
FORWARD – LOOKING STATEMENTS:
Certain statements contained in this news release constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward- looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.