GATINEAU, QC--(Marketwired - March 30, 2017) - The Hydropothecary Corporation (TSX VENTURE: THCX) ("THC" or the "Company") is very pleased to announce that $345,000 of non-interest bearing convertible debentures of the Company have been converted to equity resulting in the issuance of 460,000 units at a price of $0.75 per unit. Each unit consists of one common share and one common share purchase warrant of the Company. Each warrant entitles the holder thereof to purchase one additional common share at a price of $0.83 per share for a term of two years.
Additionally, THC is pleased to announce that it has retained the services of Vertex Strategies Inc. ("Vertex"), a Toronto based firm, for marketing and investor relations services, and Integral Wealth Securities Limited ("Integral"), a Toronto based firm, to provide market-making services to the Company in accordance with applicable securities laws and the policies of the TSX Venture Exchange ("TSXV").
Effective March 29, 2017, Vertex will provide marketing and investor relations services to the Company at the base rate of $7,000 per month. Vertex has also been granted 66,000 options to purchase common shares in THC (the "Options") at an exercise price of $1.55. The Options will vest 8.33% each three month period until the options granted to Vertex are 100% vested. THC will also reimburse Vertex for any pre-approved expenses. THC has engaged Vertex for an initial term of three years, with a minimum term of 90 days, after which the agreement can be terminated at any time by either party providing 30 days notice to the other party. Vertex and its principals act at arm's length to THC and currently have no direct or indirect interest in the securities of THC, or any right or intent to acquire such an interest, except as disclosed herein. The agreement and grant of the Options are subject to the approval of the TSXV.
Integral will trade shares of the Company on the TSXV for the purposes of maintaining an orderly market and improving the liquidity of the Company's shares. In consideration of the services provided by Integral, THC will pay Integral a monthly cash fee of $5,500. Integral will not receive any shares or options as compensation. The agreement has an initial term of 90 days subject to the right to terminate the agreement at any time on 30 days prior written notice. Integral and its clients may have or may acquire a direct interest in the securities of THC. THC and Integral are unrelated and unaffiliated entities. Integral is a member of the Investment Industry Regulatory Organization of Canada and can access all Canadian Stock Exchange and Alternative Trading Systems. The capital and securities required for any trades undertaken by Integral as principal will be provided by Integral. The agreement is subject to the approval of the TSXV.
About Vertex Strategies Inc.
Ms. Shobana Thaya is the principal of Vertex Strategies Inc., a Toronto based full service marketing communications and investor relations firm supporting key public companies to strengthen their investor relations activities and effectively communicate shareholder value for maximum exposure among analysts, portfolio managers, stockbrokers, institutional and venture capital investors, individual investors, and the media.
About Integral Wealth
Integral Wealth Securities Limited is a national, independent investment dealer that provides private and public issuers with investment banking services, institutional investors and public issuers with capital markets services and affluent individuals with wealth management services. Founded in 2003, the firm has established capabilities in market making, energy banking, and private debt / equity.
About The Hydropothecary Corporation
The Hydropothecary Corporation is an authorized licensed producer and distributor of medical marijuana licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (Canada). Hydropothecary provides naturally grown and rigorously tested medical marijuana of uncompromising quality. Hydropothecary's branding, marijuana product offering, patient service standards and product pricing are consistent with THC's positioning as a premium brand for a legal source for medical marijuana within this new marketplace. In addition to medical marijuana production and sales, Hydropothecary explores various research and development opportunities for cannabinoid extracts, drugs and combinatory chemistry. In addition, the company is investigating the development and patenting of novel technologies related to medical marijuana, as well as the import and export of medical marijuana.
This press release contains forward-looking information based on current expectations. Statements about market making activities and TSXV approvals, among others, are forward-looking information. 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. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.