TORONTO, ONTARIO–(Marketwired – Aug. 23, 2017) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Canada House Wellness Group Inc. (CSE:CHV)(CSE:CHV.CN)(CNSX:CHV) (“Canada House” or the “Company“) announces that its Marijuana for Trauma “MFT” cannabis counselling clinics division has now fully implemented its Cannabis Patient Management “CPM” client intake software. This was accomplished throughout the system of 11 clinics during June and July, which resulted in 692 new active clients in July alone. MFT expects to attract in excess of 1,000 new clients per month during the balance of this year.
This innovative CPM client intake software has been developed and refined over the past year by MFT’s collaboration with Knalysis Technologies (“KT“), a division of Canada House. Separately, KT is pleased to announce that it has recently signed a contract to provide its CPM and Analytics Web Portal services to a US-based cannabis clinic service company.
Canada House also wishes to announce that it has closed a financing of 149.5 unsecured convertible debenture units for total gross proceeds to the Company of $149,500.
The closing is the second tranche of a financing for a maximum of $350,000 plus an over-allotment option of 15%. The first tranche of the financing for gross proceeds of $253,000 closed on August 11, 2017 (for further details please see the press release of the Company dated August 11, 2017). As such, the financing is now fully subscribed.
Each Unit is comprised of: (i) $1,000 principal amount of 8.0% unsecured convertible debentures (“Convertible Debentures“) in the capital of the Company with a maturity date (“Maturity Date“) of three years from the date of issuance; and (ii) 6,667 detachable common share purchase warrants of the Company (each, a “Warrant“).
Each Convertible Debenture shall be convertible at the holder’s option into fully-paid common shares of the Company (each, a “CD Share“) at any time prior to the Maturity Date at a conversion price of $0.15 per CD Share, being a ratio of 6,667 CD Shares per $1,000 principal amount of Convertible Debentures. The interest payable on the debenture is payable in cash or in common shares of the Company at the option of the holder. Any common shares issuable as payment of interest shall be issued at a price of $0.15 per common share, subject to the rules and policies of the Canadian Securities Exchange.
Each Warrant shall be exercisable into one common share of the Company (each, a “CD Warrant Share“) at a price of $0.15 per CD Warrant Share on or prior to two years from the date of issuance.
All securities issued pursuant to the financing are subject to a four-month hold period in accordance with applicable Canadian securities laws.
The proceeds from the financing are expected to be used for expansion of existing facilities, possible acquisitions and for general working capital purposes.
Canada House Wellness Group Inc.
Canada House is the parent company of Marijuana for Trauma Inc., Knalysis Technologies and Abba Medix Corp. The Company’s goal is to become a marketplace leader through strategic partnerships, mergers, and acquisitions to create a fully integrated cannabis therapy company. For more information please visit https://www.canadahouse.ca. or www.sedar.com
Cautionary Statement Regarding Forward‐Looking Information. Certain statements within this news release pertaining to the Company constitute “forward‐looking statements”, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance, are “forward‐looking statements”. Such “forward‐looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward‐looking statements include, but are not limited to, statements with respect to the anticipated effects of the financing, regulatory changes, timeliness of government approvals for the granting of permits and licenses, changes in medical marijuana prices, actual operating performance of facilities, competition and other risks affecting the Company in particular and the medical marijuana industry generally, including those set out in the Company’s public disclosure record. The Company assumes no responsibility to update or revise forward‐looking information to reflect new events or circumstances unless required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.