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Khiron Life Sciences announces upsize of previously announced bought deal equity financing to $25 million

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VANCOUVER , Feb. 6, 2019 /CNW/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (KHRN.V), (KHRNF), (Frankfurt:A2JMZC) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and BMO Capital Markets as co-lead underwriters and joint bookrunners, and including Cormark Securities Inc. (together, the "Underwriters"), to increase the size of its previously announced "bought deal" financing from $20,020,000 to $25,080,000 (the "Offering"). Pursuant to the amended terms, the Underwriters have agreed to purchase 11,400,000 common shares of the Company ("Common Shares"), on a "bought deal" basis pursuant to a short form prospectus offering, subject to all required regulatory approvals, at a price per Common Share of $2.20 (the "Issue Price").

The Company has also granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase up to an additional 15% of the Common Shares at the Issue Price, exercisable in whole or in part at any time on or up to 30 days following the closing of the Offering. If this option is exercised in full, the Company will receive an additional $3,762,000 in gross proceeds for total aggregate gross proceeds of $28,842,000 .

The Company intends to use the net proceeds of the Offering to expand the Company's operating capacity and for working capital requirements and other general corporate purposes.

In connection with the Offering the Company has agreed to pay the Underwriters a cash commission equal to 6.0% of the gross proceeds raised from the Offering (including on any exercise of the Over-Allotment Option), and non-transferable broker warrants equal to 6.0% of the Common Shares sold under the Offering (including on any exercise of the Over-Allotment Option). Each broker warrant will be exercisable at the Issue Price to acquire one Common Share for a period of 24 months following the closing of the Offering.

The closing date of the Offering is scheduled to be on or about February 28, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSXV") and the applicable securities regulatory authorities.

This press 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 being offered have not been, nor will they 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 the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

About Khiron

Khiron is positioned to be the dominant integrated medical cannabis company in Latin America . Khiron has core operations in Colombia and is fully licensed in the country for the cultivation, production, domestic distribution, and international export of both THC (tetrahydrocannabinol) and CBD (cannabidiol) medical cannabis. In May 2018 , Khiron listed on the TSXV, becoming one of the first Colombian-based medical cannabis companies to trade on any exchange globally.

With a focused regional strategy and patient-oriented approach, Khiron combines global scientific expertise, agricultural advantages, branded product market entrance experience and education to drive prescription and brand loyalty to address priority medical conditions such as chronic pain, epilepsy, depression and anxiety in the Latin American market of over 620 million people. Khiron is led by Co-founder and Chief Executive Officer, Alvaro Torres , together with an experienced executive team, and a knowledgeable Board of Directors that includes former President of Mexico , Vicente Fox .

Further information on Khiron can be found at https://investors.khiron.ca/

Forward-Looking Information

This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, Khiron assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based, including those regarding the Offering, the intended use of proceeds and the receipt of requisite TSXV and securities regulatory approvals, are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward looking statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Khiron Life Sciences Corp.


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