M Pharmaceutical Inc.
CSE : MQ
OTCQB : MPHMF
FRANKFURT : T3F2

M Pharmaceutical Inc.

September 07, 2016 14:20 ET

M Pharmaceutical Announces First Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 7, 2016) -

NOT FOR RELEASE IN THE UNITED STATES

M Pharmaceutical, Inc. (CSE:MQ)(OTCQB:MPHMF)(FRANKFURT:T3F2) (the "Company" or "M Pharma") announced that it has completed its first closing of its recently announced non-brokered private placement of convertible debentures in the principal amount of $1,973,785. The debentures will bear interest of 10% per annum for a term of 3 years, and be convertible into common shares of the Company at a conversion price of $0.075 per share. Interest on the debentures will be pre-paid by the issuance of units ("Prepaid Interest Units") at a price of $0.08 per unit, each unit consisting of one common share and one common share purchase warrant entitling the holder to acquire one additional common share for $0.08 for a period of two years. In connection with this first closing, 7,895,140 common shares and warrants were issued as prepaid interest. In addition, finders fees of $100,040 and 94,840 broker warrants, which have the same terms as the warrants issued as part of the Prepaid Interest Units, were issued. All securities issued on this closing are restricted from trading until January 8, 2017.

Proceeds will be used to arrange manufacturing and testing of the Company's reformulated orlistat drug, starting the regulatory process around the same, and for general administrative expenses.

About M Pharmaceutical Inc.

Formed in early 2015, M Pharmaceutical Inc. is a clinical-stage company developing innovative technologies for obesity and weight management. In addition to its recent acquisition of C-103, a reformulation of orlistat from Chelatexx, LLC, the Company will focus on the development of its Trimeo capsules, temporary controllable pseudobezoars for non-invasive gastric volume reduction for the treatment of obesity, for which it has exclusive rights.

M Pharmaceutical trades on the Canadian Securities Exchange (CSE) under the ticker symbol "MQ" as well as on the OTCQB as "MPHMF" and FWB (Frankfurt Stock Exchange) as "T3F2."

Notice regarding Forward-Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based 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. This news release includes forward-looking statements with respect to the commercialization of the rights to the its biomedical technologies. 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 news 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 and the Company's filings to the CSE at www.cnsx.ca. Such risk factors may cause the inability of the Company to successfully commercialize any of its biomedical technologies.

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