Business
Maricann Announces Termination of Equity Financing by Underwriters and Provides Operations Update
Maricann Announces Termination of Equity Financing by Underwriters and Provides Operations Update.
About this update from Wayland Group Corp
[{"type":"text","content":"\n\n Not for dissemination or distribution in the United States or through U.S. newswire services.\n TORONTO, March 01, 2018 (GLOBE NEWSWIRE) -- Maricann Group Inc. (CSE:MARI) (OTCQB:MRRCF) (FRANKFURT:75M) “Maricann” or the “Company”) announced today that it has received a notice of termination from Eight Capital, Canaccord Genuity Corp., GMP Securities L.P., Industrial Alliance Securities Inc. and Clarus Securities Inc. (the “Underwriters”), terminating their obligations pursuant to an underwriting agreement dated February 2, 2018 (the “Underwriting Agreement”), whereby the Underwriters agreed to purchase on a bought deal basis 17,500,000 units of the Company, for gross proceeds of $70,000,000 (the “Financing”) at a price of $4.00 per unit. The notice of termination received from the Underwriters did not provide the reason for the Underwriters terminating their obligations under the Underwriting Agreement. Interim Chairman Paul Pathak commented, “We are disappointed to have received the notice of termination and are considering our options for further action. In the meantime, the Company has a focus on moving forward from a solid position to build increased shareholder value. We appreciate the constructive dialogue we are having with many of our shareholders.” The Company remains committed to continue efforts to complete the prospectus qualification process for the distribution of the units underlying the 20,125,000 special warrants issued on January 9, 2018. As previously announced each special warrant will entitle the holder to receive, upon the exercise thereof, for no additional consideration, 1.05 units (instead of one (1) unit) provided, however, that any fractional entitlement to such units will be rounded down to the nearest whole unit. Maricann continues to focus on its strategy to deliver growth and value as a future leader of the Canadian cannabis sector.  The Company’s operations are fully-funded, with approximately $48.2MM in the bank. The construction of Maricann’s state-of-the-art 942,000 sq. ft. flagship facility in Langton, Ontario continues on schedule, with first planting planned to occur on March 23, 2018, subject to Health Canada approval. Photos of construction progress are available on the Company’s website at h...