MedReleaf Corp. completes $100 million initial public offering and secondary offering

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GMP Securities L.P.

June 7, 2017
On June 7, 2017 MedReleaf Corp. (“MedReleaf”) completed its initial public offering and secondary offering (collectively, the “Offering”) of an aggregate of 10,600,000 common shares for aggregate gross proceeds of $100,700,000, with MedReleaf and certain shareholders (the “Selling Shareholders”) receiving gross proceeds of $80,700,049 and $19,999,951, respectively. MedReleaf commenced listing on the TSX.

MedReleaf and the Selling Shareholders have granted the Underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,590,000 common shares for additional gross proceeds of approximately $6,104,985 to MedReleaf and an aggregate of $9,000,015 to the Selling Shareholders respectively, if the Over-Allotment Option is exercised in full.

MedReleaf is a licensed producer under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”), based in Markham, Ontario. From its Markham facility, MedReleaf produces and sells its dried cannabis and cannabis oil products, including cannabis oil capsules, to patients registered under the ACMPR.

The Offering was managed by a syndicate of underwriters including GMP Securities L.P. as co-lead underwriter and sole bookrunner, Clarus Securities Inc., as co-lead underwriter, and including Canaccord Genuity Corp., Cowen and Company, LLC, Eight Capital, and PI Financial Corp. (collectively, the “Underwriters”).

Fasken Martineau acted as counsel to the Underwriters in respect of the Offering with a team that included Rubin Rapuch, John Sabetti, Jessica Catton Rinaldi, Myroslav Chwaluk and Mariko Rivers (securities/corporate), Christelle Gedeon (IP/Regulatory) and Mitchell Thaw (tax), with assistance from students-at-law Niusha Arbabi, Dana Gregoire, Kai Kramer, Russell Lindzon, Gillian Round, Ryan Schnier and Mitch Stephenson.