Pivot Pharma Announces C$15 million Private Placement and Strategic Partnership
VANCOUVER, April 9, 2019 /CNW/ - Pivot Pharmaceuticals Inc. (CSE: PVOT / OTCQB: PVOTF / FRA: NPAT) ("Pivot" or the "Company") is pleased to announce that it has signed a Binding Letter of Intent, dated April 8, 2019, with High Park Ventures Inc. ("HPK" or "High Park Ventures"), a private investment company, for a non-brokered private placement of $15 million. The private placement will be of units at a price of $0.25 per unit, with each unit consisting of one common share and one common share purchase warrant ("Warrants") having a term of two years and an exercise price of $0.35. The private placement is expected to close in two tranches, with the first closing of $5 million within two weeks and the second tranche of $10 million closing within four weeks. Upon completion of the non-brokered private placement Pivot will issue 60,000,000 units to HPK. Completion of the private placement is conditional on HPK satisfactorily completing its due diligence investigation and High Park Ventures and Pivot entering into an advisory agreement pursuant to which High Park Ventures will provide Pivot with strategic advice.
High Park Ventures is a private investment company with a focus on US investments, whose chairman is renowned entrepreneur Joe Mimran. Upon completion of the closing, Joe Mimran will join Pivot's advisory committee and will provide strategic advice to Pivot. Mr. Mimran is Co-founder and Chairman of Gibraltar and Company, and an internationally recognized brand and retail concept visionary known for brands such as Joe Fresh and Club Monaco. Krisztian Toth, the Chief Executive Officer of High Park Ventures, will join the Board of Pivot on the closing date. The High Park Ventures team previously founded NettaGrowth International Inc. ("NettaGro"), who through Dormul S.A. obtained the first license to produce medical cannabis with THC for commercialization in Uruguay. NettaGro was sold to Khiron Life Sciences Corp. on January 25, 2019.
Pivot's CEO, Dr. Patrick Frankham stated,
We are thrilled to welcome Joe Mimran to Pivot's advisory committee and receive the investment from High Park Ventures. With the investment and support provided by the High Park Ventures Team, we are able to implement and accelerate our initiatives. I would also like to welcome Krisztian Toth to Pivot's Board of Directors. The experience and track record of the High Park Ventures Team will greatly benefit Pivot's management team as we commercialize our industry leading bio-cannabis product line
Krisztian Toth, CEO of High Park Ventures Inc.,
We are excited to work with the Pivot Team and assist them with the development, commercialization and branding of premium quality cannabinoid-based nutraceuticals and pharmaceuticals and leveraging the worldwide rights of their patented drug delivery technologies
Pivot Pharmaceuticals Inc. is a science-based consumer packaged goods cannabis company engaged in the development and commercialization of health and wellness products using innovative, patent-protected drug delivery technologies. Upon receipt of a Standard Processor license (pending) from Health Canada, Pivot's premium, bioavailable, stable and effective products will be manufactured at its 50,000-sq. ft. cGMP facility located in Montreal, Quebec. Pivot's wholly-owned U.S. subsidiary, Pivot Naturals, LLC, based in Costa Mesa, California, was granted a Temporary Manufacturing Type N: Infusion License by the California Department of Public Health in November 2018. Pivot's product line includes infused beverages, vegan capsules, dissolvable tablets, topical creams and gels, intimate lubricants, roll-on pain relievers, stick packs, and bulk powder for the edibles market. For more information please visit pivotpharma.com
Cautionary Note Regarding Forward-Looking Statements
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as anticipate, believe, estimate, expect, intend, and similar expressions, as they relate to Pivot Pharmaceuticals Inc., Pivot Green Stream Health Solutions Inc., Pivot Naturals, LLC, or its management or the completion of the private placement, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, such as the failure to close the private placement, meet the conditions imposed by the CSE or other securities regulators, the level of business and consumer spending, the amount of sales of Pivot's products, statements with respect to internal expectations, the competitive environment within the industry, the ability of Pivot to continue to expand its operations, the level of costs incurred in connection with Pivot's expansion efforts, economic conditions in the industry, and the financial strength of Pivot's customers and suppliers. Pivot does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
SOURCE Pivot Pharmaceuticals Inc.