Hydropothecary Closes Offering of Units for $149.5 Million

GATINEAU, QC–(Marketwired – January 30, 2018) –

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The Hydropothecary Corporation (“THCX” or the “Company”) (TSX VENTURE: THCX) announced today that it has closed its previously disclosed bought deal public offering (the “Offering”) of units of the Company (the “Units”) for aggregate gross proceeds of 9,500,000, including the exercise, in full, of the over-allotment option. The Offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and Eight Capital and including Cormark Securities Inc., GMP Securities L.P. and Beacon Securities Limited (the “Underwriters”).

Under ​​the ​​Offering, ​​the ​​Company ​​issued 37,375,000 units ​​at ​​a ​​price ​​of ​​.00 ​​per u​nit, ​​including 4,875,000 units issued ​​pursuant ​​to ​​the ​​exercise ​​of ​​the ​​over-allotment ​​option. ​​ Each Unit is composed of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant is exercisable into one common share of the Company at an exercise price per share of .60 for a period of two years from the date of issue.

The Company intends to use the net proceeds of the Offering to acquire additional production equipment, further expand and increase the Company’s production, processing and distribution capacity, develop distribution channels in the adult recreational use market across Canada, explore international business development opportunities, and make strategic investments through acquisitions, partnerships or development of additional in-house capacity to broaden and diversify the Company’s product offering. Additional ​​information ​​on ​​the ​​expected ​​use ​​of the ​​net ​​proceeds ​​from ​​the ​​Offering ​​is ​​disclosed ​​in ​​the ​​short ​​form ​​prospectus for the Offering.

The Offering is subject to final acceptance of the TSX Venture Exchange (“TSXV”). The TSXV has conditionally accepted the Offering and the listing of the common shares and Warrants. Subject ​​to ​​the ​​Company fulfilling ​​the ​​listing ​​requirements ​​of ​​the ​​TSXV, ​​it ​​is ​​expected ​​that ​​the Warrants ​​will commence ​​trading ​​on ​​the ​​TSXV ​​at ​​market ​​open ​​on ​​Friday, February 2, ​​2018.

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 creates award-winning innovative, easy to use and easy to understand products. Hydropothecary is rapidly increasing its production capacity in the lead-up to recreational adult-use cannabis. Expansion plans will result in a total of 1.3 million sq. ft. of production space, producing 108,000 kg of dried cannabis per year, making Hydropothecary one of the largest producers in the country. With industry-leading cash cost per gram of {$content}.89, Hydropothecary is the lowest cost producer in the country. The first licensed producer in Quebec, Hydropothecary is headquartered in the province.

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.

Forward-Looking Information

This press release contains forward-looking information based on current expectations. Examples of such forward-looking information include, but are not limited to, statements about the successful completion of the Offering and the use of proceeds of the Offering. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The forward-looking statements included in this press release are made as of the date of this press release and the Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable securities legislation. A more complete discussion of the risks and uncertainties facing the Company appears in the Company’s Annual Information Form and continuous disclosure filings, which are available at www.sedar.com.