TORONTO, ON / ACCESSWIRE / May 4, 2015 / The Canadian Bioceutical Corporation ("BCC") (TSX VENTURE: BCC) announces today that has applied for TSX Venture Exchange approval to consummate a private placement of 1,428,571 common shares at a price of $0.35 per share to raise up to $500,000 of new equity financing.
It is anticipated that the gross proceeds of the Private Placement will be used as to seventy percent (70%) allocated to fund BCC's plans to expand its existing life sciences business into the production, processing and distribution of medical marijuana and cannabis-based medicinal products (including in relation to the build out of the manufacturing facility located in the City of Owen Sound, Ontario) and thirty percent (30%) allocated for general working capital purposes.
Additional details in relation to BCC’s plan to enter into the medical marijuana sector may be found in the company's two (2) News Releases of January 7, 2015.
BCC may provide a pre-determined negotiated compensation amount to certain pre-approved agents that are legally entitled to act as agents to complete the investments.
All securities issued pursuant to this private placement will be subject to a hold period that will extend a minimum of four (4) months subsequent to the closing of the private placement.
Upon the closing of the above-mentioned private placement, BCC would have 39,579,552 issued and outstanding common shares, 15,846,115 common share purchase warrants and 3,032,000 incentive stock options.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and over-the-counter products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC's principal brands are CinG-X(TM), Relieva(TM) and FertaMax(TM). The company, through its subsidiary, BioCannabis Products Ltd., and subsequent to receiving its MMPR license from Health Canada and the potential revision of these regulations, intends to develop and market a series of new cannabis-based branded medicinal products to address this rapidly-evolving market.
Additional details in relation to BCC's plan to enter into the medical marijuana sector may be found in the company's two News Releases of January 7, 2015.
CSA Investor Caution
Investors should be aware that companies cannot legally conduct a medical marijuana business without a license from Health Canada and that there is significant time and cost required to obtain such a license. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin licensed operations. There is no assurance that any company announcing its intent to enter the medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
For further information please contact:
Scott Boyes, President and CEO
scott@canadianbioceutical.com
(416) 840-4703
SOURCE: The Canadian Bioceutical Corporation
