Eve & Co Announces Closing of $10.45 Million Bought Deal Financing

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TORONTO, May 10, 2019 (GLOBE NEWSWIRE) -- Eve & Co Incorporated (“Eve & Co” or the “Company”) (TSX-V: EVE; OTCQB: EEVVF) is pleased to announce that it has closed its previously announced bought deal private placement offering of special warrants (the “Special Warrants”) at a price of $0.50 per Special Warrant for aggregate gross proceeds of $10,450,000 (the “Offering”).  Prior to the closing of the Offering, Haywood Securities Inc. (the “Underwriter”) exercised the Underwriter’s option (the “Option”)  in part and purchased a total of 20,900,000 Special Warrants inclusive of the Option. 

Each Special Warrant will be exercisable into one (1) unit of the Company (a “Unit”), for no additional consideration at any time and each Special Warrant not previously exercised shall be deemed exercised on the earlier of (i) the fifth business day after a receipt is issued for a final prospectus qualifying the Units for distribution in all of the Canadian provinces in which purchasers reside (the “Qualifying Jurisdictions”) and (ii) September 11, 2019.  Each Unit consists of one (1) common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at an exercise price of $0.60 at any time up May 10, 2021.

The Company intends to use the net proceeds from the Offering for greenhouse expansion and for working capital and general corporate purposes. The Company will use commercially reasonable efforts to prepare and file prior to June 10, 2019 a preliminary short form prospectus in the Qualifying Jurisdictions qualifying the distribution of the Units.

In consideration for its services, the Underwriter was paid a cash commission equal to 7% of the gross proceeds of the Offering and was issued an aggregate of 1,463,000 compensation special warrants (“Compensation Special Warrants”).   Each Compensation Special Warrant is exercisable into one (1) compensation option (a “Compensation Option”), for no additional consideration at any time and each Compensation Special Warrant not previously exercised shall be deemed exercised on the earlier of (i) the fifth business day after a receipt is issued for a final prospectus qualifying the Units for distribution in Qualifying Jurisdictions and (ii) September 11, 2019. Each Compensation Option entitles the holder thereof to purchase one Common Share at an exercise price of $0.50 at any time up to May 10, 2021.

About Eve & Co Incorporated

Eve & Co, through its wholly-owned subsidiary Natural MedCo Ltd., holds cultivation and processing licenses under the Cannabis Act (Canada) for the production and sale of various cannabis products, including dried cannabis, cannabis plants and cannabis oil. Natural MedCo Ltd. was Canada’s first female founded licensed producer of medicinal marijuana and received its cultivation license from Health Canada in 2016.

Eve & Co is led by a team of agricultural experts and has a licenced 220,000 sq. ft. scalable greenhouse production facility located in Middlesex County, Ontario with 32 acres of adjacent land for future expansion. Eve & Co has commenced construction of an additional 780,000 sq. ft. expansion, bringing Eve & Co’s total anticipated greenhouse capacity to 1,000,000 sq. ft.

The Company’s website can be visited at www.evecannabis.ca

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Certain statements in this press release constitute forward-looking information. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the use of proceeds of the Offering and the Company’s expansion and construction plans, future, strategy, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict, including those described in the Company’s management’s discussion and analysis for the fourteen month period ended December 31, 2018 which is available on the Company’s SEDAR profile. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release the Company does not undertake an obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities law.