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LEIIO Wellness and MAACKK Capital Corp. Announce Closing of C$2,000,000 Private Placement and Signing of Letter of Intent for Reverse Take-Over of MAACKK Capital

Newsfile Corp.
·5 min read

Calgary, Alberta--(Newsfile Corp. - March 4, 2021) -  LEIIO Wellness Ltd. ("LEIIO" or the "Company"), a premium health and wellness company dedicated to optimizing mental performance through mushroom-derived nootropics and psilocybin microdoses, and MAACKK Capital Corp. ("MAACKK") are pleased to announce the closing of a C$2,000,000 private placement financing (the "Placement") and the signing of a letter of intent ("LOI") for a reverse take-over transaction (the "Transaction") of MAACKK by LEIIO.

"We're thrilled to complete this key financing, which puts LEIIO on the path of accelerated growth and expansion," said Cory Rosenberg, LEIIO's CEO. "As psychedelic-inspired products continue to be approved and make headway through national initiatives, our vision of radically expanding our vertically-integrated supply chain and innovation lab remains our focus as we prepare to launch our first category-defining premium mental performance brand by the second half of 2021."

Net proceeds of the financing will be used for research & development of LEIIO's proprietary formulations and intellectual property, the launch of its nootropic formulations in the US and general working capital. In connection with the financing, the Company issued 10,000,000 LEIIO shares at a price of C$0.20 per share. The Placement was subscribed to by management, accredited investors and early stage-focused institutional capital.

LEIIO is well situated to emerge as an early market leader in the advancement and formulation of regulated and novel psychoactive compounds. As the North American industry accelerates and legal barriers to psilocybin are eliminated, the Company will continue to leverage its research into naturally derived psilocybin microdose protocols through LEIIO Labs to develop a ground-breaking consumer-facing, premium line of proprietary nootropics through LEIIO Brands.

In addition to the Placement, LEIIO has also entered into a LOI with MAACKK, pursuant to which the parties are expected to execute a definitive transaction agreement (the "Agreement"). The Agreement is expected to provide for the merger of LEIIO and MAACKK, resulting in a reverse take-over of MAACKK by LEIIO shareholders.

Based on the Transaction's proposed structure, after giving effect to the Placement, the resulting issuer is expected to have approximately 61,590,580 shares outstanding.

Luminous Capital acted as an advisor to LEIIO on both these transactions.

ABOUT LEIIO

LEIIO Wellness Ltd. is a vertically integrated premium health and wellness company comprising two distinct divisions, LEIIO Brands and LEIIO Labs, focused on improving brain function through mushroom-derived nootropics and psilocybin microdoses.

LEIIO Brands supports its premium line of legal and regulated nootropic formulations and plans to drive retail and Direct to Consumer sales and marketing of its proprietary product range in Q4 2021.

LEIIO Labs pioneers research into psilocybin microdose protocols, develops novel psychoactive compound formulations, and creates intellectual property across its natural psilocybin supply chain.

ABOUT MAACKK

MAACKK Capital Corp. is an unlisted reporting issuer in the Provinces of British Columbia and Alberta. Its current business is to seek investment opportunities.

The reverse take-over of MAACKK Capital Corp. is subject to a number of conditions precedent including, but not limited to, the completion of satisfactory due diligence reviews by each party of the other and the negotiation and execution of the Agreement. There can be no guarantee that these conditions precedent will be satisfied or that the reverse take-over will be completed.

For additional information please contact:

Cory Rosenberg
Chief Executive Officer

E: info@leiio.com
W: leiiowellness.com

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements which reflect LEIIO's current beliefs and are based on information currently available to LEIIO. These statements require LEIIO to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond LEIIO's control. Although LEIIO believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because LEIIO can give no assurance that they will prove to be correct.

LEIIO intends to focus on optimizing mental performance through mushroom-derived nootropics and psilocybin microdoses. This forward-looking statement is based on certain assumptions including, but not limited to, the expected future legalization of psilocybin and the ability of LEIIO to obtain any required regulatory approvals. It is also subject to certain risks including, but not limited to, the risk that psilocybin is not legalized, or is not legalized within a timeframe that allows the company to succeed, the risk that LEIIO is unable to obtain necessary regulatory approvals, and the risk that LEIIO is not able to raise sufficient capital to execute on its business plan or that its business plan itself is not successful and LEIIO is not able to adapt.

Readers are cautioned not to place undue reliance on these forward-looking statements, which are given as of the date hereof, and to not use such forward-looking statements for anything other than their intended purpose. LEIIO undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/76138