Mettrum Health Corp.
TSX VENTURE : MT

Mettrum Health Corp.

August 08, 2016 09:43 ET

Mettrum Announces Increase to Bought Deal Financing

TORONTO, ONTARIO--(Marketwired - Aug. 8, 2016) -

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

Mettrum Health Corp. ("Mettrum" or the "Company"), (TSX VENTURE:MT), a vertically integrated provider of cannabis products, is pleased to announce that further to its press release on August 8, 2016, the Company and Cormark Securities Inc. (the "Lead Underwriter"), on behalf of a syndicate of underwriters including Mackie Research Capital Corporation, GMP Securities L.P., Clarus Securities Inc., Dundee Securities Ltd., Echelon Wealth Partners Inc. and PI Financial Corp. (together with the Lead Underwriter, the "Underwriters") have agreed to increase the size of its previously announced $10,001,100 "bought deal" offering. Pursuant to the upsized deal terms, the Underwriters have agreed to purchase, on a "bought deal basis" 5,661,000 common shares ("Shares") from the treasury of the Company, at a price of $2.65 per Share (the "Offering Price") for aggregate gross proceeds of $15,001,650 (the "Offering").

The Company has granted the Underwriters an option ("Over-Allotment Option"), exercisable in whole or in part, to purchase up to an additional 849,150 Shares from the treasury of the Company at the Offering Price exercisable at any time on or up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any. In the event that the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering shall be $17,251,898.

Closing of the Offering is expected to occur on or about August 26, 2016 (the "Closing") and is subject to regulatory approval including that of the TSX Venture Exchange.

The Shares to be issued under the Offering will be offered by way of a short form prospectus in each of the provinces of Canada, except Québec.

The Underwriters will receive a cash commission of 6.0% of the gross proceeds raised in the Offering.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

About Mettrum Health Corp.

Mettrum Health Corp. is a Tier 1 Industry Issuer listed on TSX Venture Exchange. Mettrum Ltd., a wholly owned subsidiary of the Company, is a Toronto-based company and a licensed producer of medical cannabis under the Marihuana for Medical Purposes Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada) (the "MMPR"), which came into effect on October 1, 2013. Mettrum received its first license from Health Canada under the MMPR on November 1, 2013 and began production of medical cannabis at its first production facility in Bowmanville, Ontario. Mettrum received its second license from Health Canada under the MMPR on December 11, 2014 for its other wholly-owned subsidiary, Agripharm Corp., at Mettrum Creemore facility in Clearview, Ontario. Mettrum received its third license from Health Canada under the MMPR on December 17, 2015 for Mettrum Ltd. at its new 60,000 square foot production and distribution facility in Bowmanville, Ontario. With the Company's three licenses, Mettrum is a leading producer and vendor of medical cannabis under the MMPR system. In addition, through its wholly-owned subsidiary Mettrum Hempworks, Mettrum also is a licensed producer and distribution of industrial cannabis (hemp) products, including Mettrum's functional food line, Mettrum Originals, under the Industrial Hemp Regulations (Canada) issued pursuant to the Controlled Drugs and Substances Act (Canada).

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation, including, without limitation, the proposed use of the net proceeds of the Offering and the anticipated date of Closing. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the 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, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; and the results of operations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company and Mettrum disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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