PharmaCann Completes $40 Million Additional Issuance of Senior Secured Notes

CHICAGO--(BUSINESS WIRE)--PharmaCann Inc. (“PharmaCann” or the “Company”), one of the largest, private, vertically integrated cannabis companies in the United States, today announced that it has completed an additional issuance of 12% Senior Secured Notes due June 30, 2025 (the “Notes”). The net proceeds from the upsize were approximately $39.5 million, after the original issue discount and other estimated offering expenses, and will be used for strategic growth opportunities and general corporate purposes. Following this additional issuance, the aggregate principal amount of Notes outstanding was $125 million.

The Notes were offered and sold only to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction. Unless they are registered, the Notes may be offered and resold only in transactions that are exempt from registration under the Securities Act and applicable state securities laws.

Fox Rothschild LLP served as legal advisor to PharmaCann.

About PharmaCann

PharmaCann Inc. one of the nation’s largest privately held, vertically integrated cannabis companies, providing safe, reliable, and high-quality cannabis products to people in both the medical and adult-use markets. The PharmaCann geographic footprint includes dispensaries and cultivation and processing operations in six states. For more information about PharmaCann, please visit www.pharmacann.com.

Forward-looking Statements

This press release may contain “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and United States securities legislations (collectively, the “forward-looking information”) that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause the Company’s results to differ materially from those expressed or implied by such forward-looking information. Forward-looking information includes all statements that are not historical facts. In some cases, you can identify forward-looking information by the use of forward-looking terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking information is based on the beliefs and assumptions of the Company’s management based on information currently available to management. Such forward-looking information is subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company undertakes no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.