2017-10-04 02:28 ET - News Release

Mr. John Miller reports

THC DRAWS DOWN $500,000 IN TWO TRANCHES FROM CAPITAL COMMITMENT

THC Biomed Intl Ltd. intends to draw down a total of $500,000 in two tranches from its existing capital commitment agreement with Alumina Partners (Ontario) Ltd. and is in the process of completing a private placement totalling $500,000. The first tranche of $250,000 closed on Oct. 2, 2017, and the process for closing the second tranche of another $250,000 began today.

The first tranche closed on Oct. 2, 2017, for total funds of $250,000.12.

In consideration for the $250,000.12, THC issued to Alumina 403,226 units at a price of 62 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the company for a period of 36 months from closing at a price of 96 cents per share.

THC also began the process of closing the second tranche today. THC intends to close this second tranche within the next five business days, for proceeds of approximately $250,000.42.

When the $250,000.42 is received, THC intends to issue to Alumina 359,196 units at a price of 69.6 cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company for a period of 36 months from closing at a price of $1.0875 per share.

The investor in this private placement is Alumina Partners (Ontario) Ltd., and it is investing in THC pursuant to the capital commitment agreement between the companies that was announced by THC on Aug. 11, 2017.

The proceeds of the private placement will be used for general working capital, including the ramp-up of existing production and sales operations and the exploration of new opportunities.

About THC Biomed Intl Ltd.

THC's vision is to be on the leading edge of scientific research and development of products and services related to the medical cannabis industry while creating a standard of excellence. As the industry develops, it will become more important to focus on scientific research and development of products and services related to medical cannabis. Management believes THC is well positioned to be in the forefront of this rapidly growing industry.

We seek Safe Harbor.