CALGARY, Jan. 11, 2018 /CNW/ - 51st Parallel Inc. ("51st" or the "Company") is pleased to announce it has raised a total of $16.0 million from the completion of an equity financing (the "Equity Financing") and will begin construction on its 80,000 square foot greenhouse and processing facility located in the city of Lethbridge, Alberta. 51st has also entered into a strategic technical services partnership with LivWell Enlightened Health LLC ("LivWell") based in Denver, Colorado.

Equity Financing

The Equity Financing was structured as a unit offering with a $0.50 per unit offering price. Each unit consisted of one common share and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable at a price of $0.70 and has a term of three years. Proceeds from the Equity Financing will be used to fund and complete the construction of the Company's Phase 1 55,000 square foot greenhouse and 25,000 square foot cannabis cultivation facility located in Lethbridge, Alberta, and provide the Company with sufficient capital to execute its business plan focused on developing a vertically integrated operation in Alberta.

Upon exercise of the Warrants, the proceeds will provide 51st with sufficient capital to fully fund the Company's Phase 2 and 3 expansions and increase its greenhouse facility to 180,000 square feet of growing space.

LivWell Strategic Partnership

51st and LivWell have entered into a five-year strategic partnership (the "Partnership") relating to the development and operation of 51st's Lethbridge cannabis cultivation facility and the execution of 51st's cannabis retail strategy. Pursuant to the Partnership:

LivWell became a significant shareholder of 51st; LivWell will assist 51st in all phases of its business, including: design, construction, operation and maintenance of greenhouses;

cannabis procurement, cultivation, sales and distribution processes;

selection and procurement of specialty machinery and equipment;

managing outside services and other third parties that provide services, supplies or equipment; and

training employees.

"Partnering with such a highly experienced and competent operator provides a strategic differentiator for 51st and significantly reduces our operational risk. We are extremely excited about the opportunity to leverage off of LivWell's extensive industry experience over the complete cannabis vertical–from cultivation and production to sale and distribution–and directly apply this experience to our business model here in Alberta." said Sonny Mottahed, CEO of 51st.

"This strategic investment in, and partnership with, 51st provides LivWell with exposure to the attractive Canadian market, which we believe is positioned for significant near-term growth. The principles of 51st have similar business ideologies and best-practice beliefs as our team and both companies share a similar outlook regarding the evolution of the cannabis industry. We are excited to work together with 51st's team and execute on the Company's business plan." said John Lord, CEO of LivWell.

Overview of 51st

51st is a late stage applicant under Health Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR") to become a cannabis producer from its 55,000 square foot, purpose built greenhouse facility in Lethbridge, Alberta. The Company's application is currently at the security clearance and review stage with Health Canada for an ACMPR license. Completion of the construction of the Company's greenhouse facility is anticipated to occur in Q3 of 2018.

51st's strategy to become a vertically integrated cannabis company positions the Company to capitalize on the pending federally legalized recreational market. 51st is executing a "seed-to-sale" strategy to provide a variety of cannabis-related products to a significantly undersupplied Alberta market. The Company is in discussions with a number of Alberta municipalities regarding operating cannabis dispensaries and expects its production from Phase 1 will be sufficient to supply up to 10 retail locations. The Company believes its partnership with LivWell is a key differentiator as it allows 51st to leverage off of LivWell's significant cultivation and retail expertise while providing 51st a license to LivWell's highly recognized cannabis brands.

For more information on 51st, please visit www.51st.ca.

Overview of LivWell

Beginning as a single medical dispensary in 2009, LivWell provides its patients and customers with the best value, quality and variety of cannabis products including flower, concentrates, topicals, edibles, accessories and more. LivWell's team of innovative farmers and scientists grow more than 40 strains of cannabis to meet the evolving tastes of its customers and are constantly developing new strains for commercial production. LivWell also carries a wide variety of products from leading brands throughout the industry, as well as a full selection of glass and accessories to meet all of its customers' cannabis needs. LivWell's goal is to be its customers' one-stop-shop for all things cannabis.

LivWell Highlights:

Full vertically integrated cannabis producer, refiner and retailer

One of Colorado's largest cannabis retail chains (14 locations)

largest cannabis retail chains (14 locations) 2016 and 2017 Top Ranked Producer Processor and Retailer (CBE 100)

180,000 square feet of production space with 600+ full-time employees

In-house training program (LivWell University) with proprietary online platform

For more information on LivWell, please visit www.livwell.com .

Forward-Looking and Cautionary Statements

This news release may include forward-looking statements including opinions, assumptions, estimates, and, more particularly, statements concerning: the Company's corporate strategy and plans and the ability to exercise thereon; the use of proceeds from the Equity Financing; the construction of a facility in Lethbridge, Alberta and receipt of a Health Canada license to produce and sell cannabis from this facility; expectations regarding cannabis production capacity and production yields; and the Partnership, including the anticipated benefits thereof and the services expected to be provided by LivWell.

When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by 51st. Forward-looking statements are subject to a wide range of risks and uncertainties, and although 51st believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: regulatory and third party approvals, including the Heath Canada license, not being obtained in the manner or timing anticipated; the ability to implement corporate strategies; the yield from cannabis growing operations; the state of domestic capital markets; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; and competition from other industry participants.

Except as required by applicable laws, 51st does not undertake any obligation to publicly update or revise any forward-looking statements.



SOURCE 51st Parallel Life Sciences Ltd

For further information: Sonny Mottahed, Chairman and CEO, [email protected]; Jason Kujath, President and COO, [email protected]; David Cheadle, CFO, [email protected], 51st Parallel Inc., Suite 300, 407 - 3rd Street S.W., Calgary, Alberta T2P 4Z2, Phone: (403) 351-1779