Rockshield Capital Provides Cannabis Investment Portfolio Update

VANCOUVER, May 24, 2018 /CNW/ - Rockshield Capital Corp. (CSE:RKS), (US:RKSCF), (FSE:6BC) ("Rockshield" or the "Company") is pleased to provide an update on the Company's cannabis investment portfolio.

The start of 2018 has been a very active time for several of Rockshield Capital's cannabis investee companies with various milestones being realized including market share gains, additional financings and go public transactions, below is a summary of some of the key milestones achieved.

The Green Organic Dutchman

The Green Organic Dutchman (TSX:TGOD) successfully completed the largest Cannabis initial public offering (IPO) in history raising aggregate gross proceeds of $132,263,225 by issuing an aggregate of 36,236,500 units of the company, including the overallotment units at a price of $3.65 per unit. Subsequent to the IPO the company added several key executives including a chief financial officer, general counsel, vice-president of sales, VP of marketing, VP of operations, and regional sales manager for Ontario and Western Canada to further bolster the team. Most recently the company announced it was granted a supplemental licence from Health Canada for the production of cannabis oils, received organic certification from Ecocert Canada, and entered into an exclusive agreement with CBx Enterprises LLC for the licensing of the Evolab and CBx Sciences brands and proprietary technologies and formulations within Canada and other international jurisdictions outside of the United States. We are very pleased with all of developments at TGOD and the IPO price represents a 630% return from our initial seed investment 18 months ago for 500,000 shares at $0.50.

Plus Products

Plus Products a leading California manufacturer of cannabis infused products has continued to increase its market share becoming the #4 edibles manufacturer in California. In addition, the company recently announced that it has closed a financing of approximately $6M at $1.20 per unit to expand its operations to satisfy California's growing demand for cannabis infused edibles. The financing was led by strategic investments from Serruya Private Equity Partners (SPE) and Navy Capital Green Fund LP. and will be used to fund rapid production capacity expansion, factory automation, working capital, and new product development. This latest financing represents a 25% increase in pricing over the prior financing where Rockshield purchased 600,000 units. The company is now preparing for its Canadian listing expected to be completed no later than October 2018.

Halo Labs

Halo Labs a leading manufacturer of cannabis concentrates and oils, with 20% market share in Oregon and now expanding into Nevada and California. The company has announced its go public transaction entering into a binding letter of intent to complete a business combination transaction with Apogee Opportunities Inc (TSX-V: APE). Concurrent with the business combination Apogee and Halo signed an engagement letter with Canaccord Genuity Corp. and Clarus Securities pursuant to which, prior to the completion of the transaction will complete a private placement financing at a price of 40 cents per unit for aggregate gross proceeds of approximately $8-million.

48North Cannabis Corp

48North is a private, vertically integrated cannabis company in Canada with it first ACMPR-licensed facility located on 800 acres of owned land near Kirkland Lake, Ont., and operated by its wholly owned subsidiary, DelShen Therapeutics Corp. The company entered into a definitive agreement with Kramer Capital Corp. as part of its go public strategy and expects to be trading by June 2018. In addition, the company closed its previously announced concurrent financing, pursuant to which 48North issued 16,010 convertible debenture units at a price of $1,000 per convertible debenture unit for aggregate gross proceeds of $16.01-million. The 48North convertible debentures will automatically convert into common shares of 48North at a price of 90 cents per 48North share. Rockshield participated in the offering for $200,000. The offering was led by Eight Capital as the sole underwriter pursuant to an underwriting agreement.

Dave Doherty, President and CEO said "Cannabis continues to be a core focus of our investment portfolio and we very pleased with the results thus far of our early investments. While the sector has become crowded with an increasingly growing number of opportunities we will continue to be disciplined and look for opportunities where we can invest early backing proven management teams with a track record of success."

Rockshield will shortly provide additional updates on our medtech, fintech, and resources holdings. 

ROCKSHIELD CAPITAL CORP.

Rockshield is an actively managed venture capital fund and merchant bank, focused on small cap high growth companies. Rockshield's management team has been seed financing and investing in early stage venture companies for over the past 20 years and performs extensive due diligence as it looks to build a portfolio of opportunistic investments with the aim of generating superior long-term returns while managing risks.  Leveraging the vast professional network and experience of the management team, Rockshield has early access to private and public deals and reviews hundreds of deals a year selecting only those with the best potential returns. 

For further information regarding Rockshield, see Rockshield's disclosure documents on SEDAR at www.sedar.com.

The Canadian Securities Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this news release.

SOURCE Rockshield Capital Corp.

Rockshield Capital Corp., Dave Doherty, President & CEO, [email protected]; Dan Sorger, Director, [email protected]