Canadian International Pharma Corp. Announces Proposed Share Consolidation and Non-brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
News Release No: 20-04
Trading symbol: TSX-V – NEX: CIP.H
Canadian International Pharma Corp. Announces Proposed Share Consolidation and Non-brokered Private Placement
West Vancouver, British Columbia – August 21, 2020 – Canadian International Pharma Corp. (the “Company” or “CIPC”) announces that it intends to proceed with a consolidation of its common shares (each, a “Share”) on the basis of ten (10) pre-consolidation Shares for one (1) post-consolidation Share (the “Consolidation”).
Currently, a total of 38,453,013 Shares are issued and outstanding. Accordingly, if the Consolidation is put into effect, a total of 3,845,301 Shares would be issued and outstanding, assuming there are no other changes in the issued capital of the Company. There is currently no maximum number of authorized Shares. The Consolidation will provide CIPC with increased flexibility to seek additional financing opportunities and is subject to approval of the TSX Venture Exchange. There is no name change in conjunction with the Consolidation.
The Company also announces that, subject to regulatory approval, it has arranged a non-brokered private placement financing (the “Financing”) of up to 8,888,888 units (each, a “Unit”) at a price of $0.1125 per Unit for gross proceeds of up to $1,000,000. Each Unit consists of one post-Consolidation Share and one share purchase warrant (each, a “Warrant”). One Warrant entitles the holder thereof to purchase one additional post-Consolidation Share of the Company at a price of $0.15 per post-Consolidation Share for a period of one year from closing of the Financing.
The proceeds from the Financing will be used for general working capital.
All securities issued in connection with the Financing will be subject to a statutory hold period expiring four months and one day after closing of the Financing. Completion of the Financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
None of the securities sold in connection with the Financing are registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. 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 jurisdiction in which such offer, solicitation or sale would be unlawful.
For further information, contact Douglas L. Mason at 604.922.2030
CANADIAN INTERNATIONAL PHARMA CORP.
“Douglas L. Mason”
Douglas L. Mason, CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CW15458074.1