PharmaCan Capital Corp, a merchant bank that invests in the Canadian medical marijuana industry, has appointed Michael Gorenstein as its president and CEO, replacing Paul Rosen, who has resigned. Gorenstein, who has served as vice-chairman of PharmaCan, is a partner at Alphabet Ventures, a New York-based investment management firm. Toronto-based PharmaCan also announced the close of the first tranche of a $6 million private placement deal.
PharmaCan Announces Closing of First Tranche of Non-Brokered Private Placement and Increases Size of Offering; Michael Gorenstein Appointed as CEO
TORONTO, ON–(Marketwired – May 16, 2016) –
PharmaCan Capital Corp. (TSX VENTURE: MJN) (“PharmaCan” or the “Company”) is pleased to announce an increase from $5,000,000 to $6,000,000 to its previously announced, non-brokered private placement, disclosed in a press release on May 9, 2016 (the “Increased Offering”). Under the Increased Offering, the Company may issue up to 32,432,432 common share units (the “Units”). Each unit consists of one common share and one common share purchase warrant (the “Warrant”). Each Warrant will entitle the holder to purchase one common share of the Company at a price of $0.245 for a period of 5 years. In addition, the Company is pleased to announce the closing of the first tranche of the previously announced non-brokered private placement of 10,810,812 Units for aggregate gross proceeds of $2,000,000. The proceeds of the private placement will be used for the repayment of debt and general working capital purposes.
All securities issued in connection with the Offering are subject to a regulatory hold period of four months and a day in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws, and such further restrictions as may apply under foreign securities laws. Completion of the financing is subject to final approval of the TSX Venture Exchange.
APPOINTMENT OF NEW OFFICER
PharmaCan is pleased to announce, subject to final acceptance by TSXV, the appointment of Michael Gorenstein, Vice-Chairman of the Company, as President, Chief Executive Officer and Corporate Secretary of the Company, the appointment is effective immediately. “This addition to leadership, combined with new investment capital, will enable the Company to maximize the value of its strategic assets while defining an exciting, expanded vision for the future,” said Michael Krestell, a director of the Company. “Mr. Gorenstein has been an incredible asset to the Company through his service as Vice-Chairman, and we are confident his leadership will foster strategic clarity and ensure disciplined execution as CEO,” added Krestell.
Mr. Gorenstein succeeds Paul Rosen, who has resigned as President, CEO, Corporate Secretary and a director of the Company and as a director of the subsidiaries of the Company. Rosen will continue to provide consulting services to the Company through the transition. “We would like to thank Paul for the exceptional service he provided PharmaCan throughout his tenure as CEO over the last three years,” said Gorenstein. He added, “Paul has tremendous experience in the industry and we are fortunate that we can continue to leverage his expertise going forward.”
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities 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 and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About PharmaCan Capital Corp.
PharmaCan is a company in the business of investing in companies licensed to produce medical marihuana pursuant to Canada’s MMPR.
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including the Company’s ability to implement its business development strategy. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Except as required by law, PharmaCan disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on these forward-looking statements. This news release contains information obtained by the Company from third parties, including but not limited to market data. The Company believes such information to be accurate but has not independently verified such information. To the extent such information was obtained from third party sources, there is a risk that the assumptions made and conclusions drawn by the Company based on such representations are not accurate.
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.
Investor & Media Relations
PharmaCan Capital Corp.
Phone: (416) 603-7381 EXT #236
Photo courtesy of Reuters/Cliff Despeaux