Hydropothecary Announces Upsize of Previously Announced Bought Deal Private Placement Financing to $25.0 million

TORONTO, June 27, 2017 /CNW/ - The Hydropothecary Corporation ("THCX" or the "Company") (TSX VENTURE:THCX) announced today that it has entered into a revised agreement with Canaccord Genuity Corp. and a syndicate of underwriters (the "Underwriters") to increase the size of its previously announced bought deal, private placement of convertible debenture units to $25,000,000. 

As previously announced, each convertible debenture unit will consist of $1,000 principal amount of 8.0% senior unsecured convertible debentures of the Company (the "Convertible Debentures") and 313 common share purchase warrants (the "Warrants") of the Company (the "Offering").  The Convertible Debentures will bear interest from the date of closing at 8.0% per annum, payable semi-annually on June 30 and December 31 of each year and will mature on June 30, 2019 (the "Maturity Date"). The Convertible Debentures will be convertible at the option of the holder into common shares of the Company at any time prior to the close of business on the Maturity Date at a conversion price of $1.60 per share (the "Conversion Price"). Beginning on the date that is four months and one day following the closing date, the Company may force the conversion of all of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on 30 days prior written notice should the daily volume weighted average trading price of the common shares of the Company be greater than $2.25 for any 15 consecutive trading days.

Each Warrant will be exercisable to acquire one common share of the Company for a period of two years following the closing date of the Offering at an exercise price of $2.00 per share, subject to adjustment in certain events, and subject to the Company's right to accelerate expiry of the Warrants if, beginning on the date that is four months and one day following the closing date, the closing trading price of the common shares of the Company equals or exceeds $3.00 for any 15 consecutive trading days.

The Underwriters continue to hold an option to purchase up to an additional $5,000,000 of convertible debenture units under the Offering.

The Company intends to use the net proceeds of the Offering for expansion of its production facility in Gatineau, Québec and for working capital and general corporate purposes. Closing of the Offering is expected to occur on or about July 13, 2017.  The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.

About The Hydropothecary Corporation

The Hydropothecary Corporation is an authorized licensed producer and distributor of medical cannabis licensed by Health Canada under the Access to Cannabis for Medical Purposes Regulations (Canada). Hydropothecary provides naturally grown and rigorously tested medical cannabis of uncompromising quality. Hydropothecary's branding, cannabis product offering, patient service standards and product pricing are consistent with THCX's positioning as a premium brand for a legal source for medical cannabis within this new marketplace. In addition to medical cannabis 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 cannabis, as well as the import and export of medical cannabis.

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.

SOURCE The Hydropothecary Corporation

Jennifer Smith, Manager of Financial Reporting and Investor Relations, The Hydropothecary Corporation, 1-866-438-THCX (8429), [email protected], www.THCX.com