Toronto, Ontario - April 16, 2014 - Vida Cannabis Corp. ("Vida Cannabis") is pleased to announce it has completed an oversubscribed equity financing, raising US$ 2.5 million via private placement offering of its common stock. Initially, the round was set at US$ 1.5 million. Due to significantly higher interest than anticipated, Vida increased the quantum of financing to US$ 2.5 million, which was consented to by investors of this round. This private placement consisted of 10,000,000 common shares at a price of US$ 0.25 per share for total gross receipts of US$ 2.5 million, bringing the total number of common shares outstanding to 28,708,400.
Vida Cannabis Chairman and CEO Greg Wilson stated: "This is a tremendous outcome for Vida Cannabis Corp. and demonstrates the excitement amongst investors and the ongoing support of our existing shareholders as we continue developing Vida`s business. The proceeds of this successful equity financing will allow us to take steps that are essential to establishing Vida Canada`s profile as a candidate fit for licensing with Health Canada."
The net proceeds from the offering will be used by Vida Cannabis to further its wholly owned subsidiary Vida Cannabis (Canada) Ltd.`s efforts to obtain a commercial producer license under the Marihuana for Medical Purposes Regulations. In particular, the proceeds will be used for capital expenditures including further improvements to the recently acquired 315,000-square-foot Stellarton-based production plant, retaining key personnel and establishing operational infrastructure and general working capital purposes.
Mr. Wilson continued: "As Vida continues to progress toward obtaining a license, I believe it is reinforcing its dominant positioning in the medical marijuana industry. Vida has twice the footprint of any currently licensed producer in terms of production capacity, is engaging best-in-class personnel and is securing the expertise and tools required to produce premium quality products."
About Vida Cannabis Corp.
Vida Cannabis Corp. ("Vida Cannabis") is focused on developing a dominant production footprint in the rapidly developing global marketplace for the legal use of medicinal and recreational marijuana.
Initial operations are focused on the Canadian market where Health Canada has established national guidelines enabling best-in-class producers to acquire commercial production licenses under the Marihuana for Medical Purposes Regulations.
Via its wholly owned subsidiary, Vida Cannabis (Canada) Ltd., Vida Cannabis purchased a 315,000-square-foot production facility in the town of Stellarton, Nova Scotia and secured a 50-year irrevocable approval unanimously from the local municipality to operate a medical marijuana production plant at the facility.
The highly secure facility boasts a fully engineered concrete floor, 18-foot-high concrete walls and a steel roof making it an ideal location for the construction of a customized, state-of-the-art modern medical marijuana production plant.
Vida Cannabis is working with one of the most talented cannabis consulting teams in the world, which has extensive resources in the United States, Canada and Europe, to establish an optimized end-to-end production plan to help position Vida Cannabis with the largest, most advanced medical marijuana facility in Canada.
Vida Cannabis continues to evaluate additional potential markets as regulatory bodies around the world pass legislation enabling the production and distribution of medicinal or recreational marijuana.
On behalf of the board,
Greg Wilson - Chairman & CEO
Vida Cannabis Corp.
This announcement does not constitute or form part of, and shall under no circumstances be considered as, an offer to sell, a solicitation to purchase, or advice on investments in any securities of Vida Cannabis Corp. ("Vida Cannabis"). Offers and solicitations shall be expressly identified as such and made in compliance with applicable securities laws. This announcement is for information purposes only. It should not be relied upon as a basis for investment decisions. You should consult with your own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of any investments you are considering. Whilst the information provided here is believed to be reliable, it cannot be guaranteed. It may contain forward-looking statements made by or on behalf of Vida Cannabis about its business or financial objectives, position, strategies or expectations. Such forward-looking statements may be identified by words such as, or similar to, "intends," "anticipates," "believes," "expects" and "hopes" and includes, without limitation, the development of production facilities, approval from regulatory authorities and the ability for Vida Cannabis to obtain adequate financing to meet its business objectives. These statements involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated. The statements in this announcement do not guarantee future performance. Vida Cannabis does not undertake any obligation to update any information provided in this announcement. In Canada, Vida Cannabis (Canada) Ltd., a wholly owned subsidiary of Vida Cannabis, must obtain approval from Health Canada in order to operate as a licensed commercial producer under the Marihuana for Medical Purposes Regulations. Vida Cannabis makes no representations or warranties that it will receive Health Canada approval.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vida Cannabis Corp. via GlobeNewswire