Chemesis International Inc. Announces Closing of CDN $5,000,000 Private Placement and Settlement of Debt
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Chemesis International Inc. Announces Closing of CDN $5,000,000 Private Placement and
Settlement of Debt
January 23, 2020
Vancouver, BC – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “ Company” or
“Chemesis”), is pleased to announce that it has completed its previously -announced private placement
(“Private Placement”) of 16,393,444 units (“Units”) at a price of CDN $0.305 per Unit. Each Unit is comprised
of one common share and one common share purchase warrant (the “Warrants”). Each Warrant is exercisable
for one common share at a price of CDN $0.405 for a period of 24 months.
The Company also announces that it has entered into debt settlement agreements with certain convertible
debenture holders and other creditors, pursuant to which it has discharged an aggregate total indebtedness of
CDN $1,884,996, on the following bases:
● CDN $1,485,831 owing under a convertible debenture has been repaid in cash.
● CDN $284,444 owing under a convertible debenture has been repaid through the issuance of 406,348
units of the Company (the “Debt Settlement Units”), with each Debt Settlement Unit being comprised
of one common share and one common share purchase warrant (the “ Debt Settlement Warrants ”)
and issued at a deeme d price of CDN $0.70. Each Debt Settlement Warrant is exercisable for one
common share at a price of CDN $0.70 for a period of 24 months.
● CDN $114,691 owed to a creditor was settled through the issuance of 163,844 Debt Settlement Units.
In addition, the Company has also completed its previously announced convertible debt settlement (see news
release dated January 14, 2019) whereby it has had discharged a total indebtedness of CDN $1,109,440 under
certain convertible debentures through the issuance of 1,232,711 units of the Company (the “Debt Conversion
Units”), with each Debt Conversion Unit being comprised of one common share and one common share
purchase warrant (the “ Debt Conversion Warrants”) and issued at a deemed price of CDN $0.90. Eac h Debt
Conversion Warrant is exercisable for one common share at a price of CDN $1.12 for a period of 24 months.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
the United States of Amer ica. The securities referred to herein will not be or have not been registered under
the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States of
America absent registration or an applicable exemption from registration requirements.
On Behalf of The Board of Directors
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Edgar Montero
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated U.S. Multi-State operator with International operations in Puerto
Rico and Colombia.
The Company focuses on prudent capital allocation to ensure it maintains a first mover advantage as it enters new
markets and is committed to differentiate itself by deploying resources in markets with major opportunities. The
Company operates a portfolio of brands that cater to a wide community of cannabis consumers, with focus on quality
and consistency.
Chemesis has facilities in both Puerto Rico and California. The Company believes it is well -positioned to win
additional licenses in highly competitive merit-based US states and will expand its footprint to ensure it maintains a
first mover advantage.
Investor Relations:
1 (604) 398-3378
Forward-Looking Information: This news release contains "forward -looking information" within the meaning of applicable
securities laws relating to statements regarding the completion of the Offering, the Company's business, products and future of
the Compa ny’s business, its product offerings and plans for sales and marketing, including with respect to the Company’s
expectations regarding its plans to continue to develop dispensaries in Puerto Rico, its ability to obtain licenses in additi onal
jurisdictions. Although the Company believes that the expectations reflected in the forward-looking information are reasonable,
there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on
forward-looking information. Such forward -looking statements are subject to risks and uncertainties that may cause actual
results, performance and developments to differ materially from those contemplated by these statements depending on, among
other things, the risks that the Offering may not complete in the full amount contemplated or at all, the Company's products and
plan will vary from those stated in this news release and that the Company may not be able to carry out its business plans as
expected, including, but not limited to, in relation to its ability to obtain licenses in additional jurisdictions. Except as required by
law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-
looking information in this news release. Although the Company believes that the expectations reflected in the forward -looking
information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference
to profitability based on sales reported. The statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release