Origin House Announces Acceleration of Warrant Expiry Date
Ottawa, Canada – November 23, 2018 – CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) (“Origin House” or the “Company”), a leading North American cannabis products and brands company, announced today that it is accelerating the expiry date of all outstanding common share purchase warrants (the “Warrants“) of the Company issued pursuant to the warrant indenture dated April 13, 2018 between the Company and AST Trust Company (the “Warrant Indenture“). The proceeds from the exercise of the Warrants will be primarily used by the Company to expand its footprint across California, as well as for general corporate and working capital purposes.
Pursuant to the Warrant Indenture, the Company may accelerate the expiry date of the Warrants in the event that the daily volume weighted average share price on the Canadian Securities Exchange (“CSE”) of the issued and outstanding common shares of the Company (“Common Shares”) is greater than $8.00 per Common Share for a period of 15 consecutive trading days following the date of issuance of the Warrants (the “Acceleration Trigger”).
The Company confirms that as of the close of markets on November 21, 2018, an Acceleration Trigger had occurred. In accordance with the terms of the Warrant Indenture, the Company has delivered notice of the Acceleration Trigger to registered holders of Warrants, which, combined with this news release, constitutes notice to the Warrant holders of the Acceleration Trigger. Accordingly, the Company confirms that the Warrants are now set to expire at 5:00pm EST on December 14, 2018, being the 21st day following the delivery of notice to Warrant holders of the occurrence of the Acceleration Trigger (the “Early Expiry Date”). Any Warrants remaining unexercised after the Early Expiry Date will be cancelled.
In total there were 1,924,415 warrants issued which are the only remaining warrants outstanding in Origin House. Each Warrant is exercisable into one Common Share at a price of $5.50 per Common Share. Accordingly, if all of the outstanding Warrants are exercised, gross proceeds to the Company will total $10,584,283. As of the close of market on November 21, 2018, a total of 361,210 warrants have already been exercised.
The Warrants currently trade on the CSE under the ticker OH.WT and, in accordance with CSE procedures, will be halted at 12:00pm EST and delisted at market close on the Early Expiry Date.
In anticipation of all Warrants at a price of $5.50 per Common Share being exercised, the total number of Common Shares then-outstanding of Origin House will be 60,623,387.
About Origin House
Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. The Company’s foundation is in California, the world’s largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries. Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House’s shares trade on the Canadian Securities Exchange (CSE) under the symbol “OH” and on the OTCQX under the symbol “ORHOF”. Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
For further inquiries, please contact:
Marc Lustig, Chairman and CEO
Jonathan Ross, Origin House Investor Relations
LodeRock Advisors Inc.