MedReleaf Corp.
TSX : LEAF

June 07, 2017 08:58 ET

MedReleaf Corp. Completes Initial Public Offering

MARKHAM, ONTARIO--(Marketwired - June 7, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

MedReleaf Corp. ("MedReleaf") (TSX:LEAF) today announced the successful closing of its initial public offering and secondary offering of an aggregate of 10,600,000 common shares of MedReleaf at a price of $9.50 per common share (the "Offering Price") for aggregate gross proceeds of $100,700,000, with MedReleaf and certain shareholders (the "Selling Shareholders") receiving gross proceeds of $80,700,049 and $19,999,951, respectively.

The common shares will commence trading today on the Toronto Stock Exchange under the symbol "LEAF".

Pursuant to the Offering, MedReleaf issued 8,494,742 Offered Shares from treasury (the "Treasury Offering"). In addition, 2,105,258 Offered Shares were sold pursuant to a secondary offering (the "Secondary Offering") by the Selling Shareholders. MedReleaf will not receive any proceeds from the Secondary Offering.

The Offering was managed by a syndicate of underwriters including GMP Securities L.P. as co-lead underwriter and sole bookrunner, Clarus Securities Inc., as co-lead underwriter, and including Canaccord Genuity Corp., Cowen and Company, LLC, Eight Capital, and PI Financial Corp. (collectively, the "Underwriters").

MedReleaf was represented by Norton Rose Fulbright Canada LLP and the Underwriters were represented by Fasken Martineau DuMoulin LLP.

MedReleaf and the Selling Shareholders have granted the Underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,590,000 common shares at the Offering Price of $9.50 per share for additional gross proceeds of approximately $6,104,985 to MedReleaf and an aggregate of $9,000,015 to the Selling Shareholders respectively, if the Over-Allotment Option is exercised in full.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Offered Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws. Accordingly, the Offered Shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of MedReleaf in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About MedReleaf Corp.

MedReleaf is a licensed producer under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR"), based in Markham, Ontario. From its Markham facility, MedReleaf produces and sells its dried cannabis and cannabis oil products, including cannabis oil capsules, to patients registered under the ACMPR. The first and only ISO 9001 certified cannabis producer in Canada, MedReleaf is an analytically-driven organization focused on patient care, scientific innovation, and advancing the understanding of the therapeutic benefits of cannabis.

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