Abacus Health Products Completes $34 Million Bought Deal Offering

Abacus Health Products Completes $34 Million Bought Deal Offering

(Toronto, Ontario – May 8, 2019) Abacus Health Products, Inc. (CSE: ABCS) (“Abacus” or the “Company”) today announced the closing of its bought deal offering of 2,464,450 units (the “Units”) including the exercise, in full, of the Underwriters’ over-allotment option (the “Offering”) for gross proceeds of $34,502,300 (the “Offering”).

The Offering was underwritten by a syndicate of dealers led by Eight Capital and including GMP Securities LP, Cormark Securities Inc., Haywood Securities Inc. and Paradigm Capital Inc.

Each Unit consists of one subordinate voting share of the Company (“Subordinate Voting Shares”) and one-half of one Subordinate Voting Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire, subject to adjustment in certain circumstances, one Subordinate Voting Share at an exercise price of $18.00 for a period of 36 months following the closing of the Offering. It is expected that the Warrants will commence trading on the Canadian Securities Exchange as at the open of markets on May 8, 2019 under the symbol “ABCS.WT”.

The Units were offered under a short form prospectus dated May 3, 2019 (the “Prospectus”) in all of the provinces of Canada, except Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions.  

The Company intends to use the net proceeds of the Offering for the following purposes: to accelerate the Company’s marketing and sales programs to seek to increase retail pharmacy store locations from 1,100 to over 10,000; for working capital to support the associated increase in sales; to advance the  international distribution of its products and other general corporate purposes. Additional information on the use of proceeds is available in the Prospectus.

This press release is not an offer or 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 offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

Forward-Looking Statements

This news release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.

The forward-looking statements contained in this news release include, without limitation, statements relating to the anticipated use of the net proceeds of the Offering, the expected trading of the Warrants on the Canadian Securities Exchange and the execution of the Company’s growth strategy, are based on management’s current expectations and are subject to a number of risks, uncertainties and assumptions, including assumptions regarding the Company’s ability to efficiently operate its business, market and economic conditions, business prospects or opportunities, future plans and strategies, anticipated events and trends, and regulatory changes that may affect the Company and its customers and industry. There can be no assurance that actual results will not differ materially from those expressed or implied in forward looking statements. Undue reliance should not be placed on forward-looking statements. Additional information about these risks, uncertainties and assumptions is contained under “Risk Factors and Uncertainties” in the Company’s annual information form dated April 12, 2019, which is available under the Company’s SEDAR profile at www.sedar.com. Each forward-looking statement speaks only as of the date hereof, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

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About Abacus Health Products

Abacus is a company engaged in the development and commercialization of over-the-counter (OTC) registered topical medications with active pharmaceutical ingredients and which contain natural ingredients, including a cannabinoid-rich hemp extract containing CBD from Cannabis sativa L plant. Abacus’ products are aimed at the rapidly growing markets for topical pain relief and therapeutic skincare and are based on proprietary patent-pending technologies developed by Abacus. Abacus’ formulations combine advanced science with natural ingredients to provide safe relief. Abacus currently offers two lines of products: (i) CBD CLINIC™, marketed to the professional practitioner market, and (ii) CBDMEDIC™, marketed to the consumer market. Abacus’ products are offered across the United States and are produced by a contract manufacturer in a cGMP compliant and audited manufacturing facility.

For further information: please contact Hank Hague, CFO, of the Company, at 416-848-1457 or

[email protected]

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