MagicMed Industries Announces $2.5 Million Unit Offering Led by Gravitas Securities


Ryan Allway

November 10th, 2020

News, Top News


CALGARY, AB, Nov. 10, 2020 /CNW/ – MagicMed  Industries Inc. (CSE: MGIC reserved) (“MagicMed” or the “Company“) is pleased to announce a proposed offering of up to 5,000,000 units of the Company (the “Units“) at an offering price of $0.50 per Unit (the “Issue Price“), for aggregate gross proceeds of up to $2,500,000 (the “Offering“). The Units will be offered by means of private placement on a commercially reasonable best efforts basis by Gravitas Securities Inc. acting as lead agent and sole bookrunner (the “Agent“).

Each Unit will be comprised of one (1) common share in the capital of the Company (a “Common Share“) and one-half of one (1/2) Common Share purchase warrant (each whole warrant, a “Warrant“). Each Warrant will entitle the holder thereof to purchase one Common Share, at an exercise price of $0.75 (the “Exercise Price“) for a period of two (2) years from the date of a liquidity event resulting in the common shares of the Company becoming listed for trading on the Canadian Securities Exchange (the “CSE“), TSX Venture Exchange, Toronto Stock Exchange or any other stock exchange as may be agreed by the Company and the Agent (the “Liquidity Event“).

The Company has agreed to grant the Agent an over-allotment option (the “Over-Allotment Option“) to purchase up to an additional 20% of the Units at the Issue Price, exercisable in whole or in part, at any time up to two days prior to the closing of the Offering. If this option is exercised in full, the Company will receive an additional $500,000 in gross proceeds for total aggregate gross proceeds of $3,000,000.

In connection with the Offering the Company has agreed to pay the Agent a cash fee of 8% of the aggregate gross proceeds raised from the Offering, and non-transferable broker warrants (“Broker Warrants“) equal to 8% of the aggregate number of Units issued under the Offering. Each Broker Warrant will entitle the holder to acquire one (1) Unit of the Company at any time for a period of two (2) years from the date of a Liquidity Event at an exercise price equal to the Issue Price. Each whole Warrant underlying each Unit acquired upon exercise of a Broker Warrant shall be exercisable for a period of two (2) years from the date of issuance of such Warrant to acquire one (1) additional Common Share at the Exercise Price.

Following the completion of the Offering, MagicMed intends to file a non-offering prospectus with certain Canadian securities regulatory authorities and apply to list on the CSE. MagicMed has reserved the ticker symbol “MGIC” in connection therewith.

The Company intends to use the net proceeds of the Offering for the development of the PsybraryTM, capital expenditures, and general corporate purposes.

The closing date of the Offering is scheduled to be the week of November 30, 2020 or such other date as the Agent and the Company may agree (the “Closing Date“) and may be closed in one or more tranches.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933 (the “U.S. Securities Act“), as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About MagicMed

MagicMed Industries intends to partner with pharmaceutical and other companies to develop psychedelic-derived medicinal and licit consumer goods products. MagicMed’s molecular derivatives library, the PsybraryTM is anticipated to be an essential building block from which industry can develop new patented products. The initial focus of the PsybraryTM is on psilocybin, which is expected to be opportunistically expanded to other psychedelics like MDMA, ketamine, ibogaine, mescaline, and ayahuasca.

MagicMed Industries Inc.

On Behalf of the Board

Dr. Joseph Tucker

Chief Executive Officer

jtucker@magicmedindustries.com

Forward Looking Statements 

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. All statements other than statements of present or historical fact are forward-looking statements, including statements with respect to MagicMed’s future business plans and partnerships, the use of proceeds from the Offering, and the anticipated uses of MagicMed’s patents and the development of the PsybraryTM. Forward-looking statements include words or expressions such as “proposed”, “anticipated”, “will”, “subject to”, “near future”, “in the event”, “would”, “expect”, “prepared to” and other similar words or expressions. 

Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements which include, but are not limited to: the ability of MagicMed to secure financing on the terms set out in this press release or at all; the ability of MagicMed to secure patent protection; the regulatory environment in which MagicMed operates; the ability of MagicMed to enter into partnership agreements or other arrangements; the ability of MagicMed to carry out its business plans (including but not limited to its plans to file a non-offering prospectus and apply to list on a stock exchange) and unforeseen challenges in carrying out such plans; the development and expansion of the PsybraryTM; trends in the future use of psilocybin; general business, economic, competitive, political and social uncertainties; the state of capital markets; risks relating to general economic, market and business conditions; and other unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We disclaim any obligation to update or revise these forward-looking statements, except as required by applicable law.

SOURCE MagicMed Industries Inc.

For further information: MagicMed Industries Inc. Investor Relations at IR@magicmedindustries.com or visit our website at www.magicmedindustries.com

Related Links

www.magicmedindustries.com

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading