Maricann Provides Update on Financing

TORONTO, ONTARIO–(Marketwired – Oct. 24, 2017) –

Maricann Group Inc. (CSE:MARI) (CSE:MARI.CN) (CNSX:MARI) (OTCQB:MRRCF)(FRANKFURT:75M) (“Maricann” or the “Company”) announces that it has amended the terms of its previously announced private placement offering (the “Offering”) of convertible debenture units (the “Convertible Debenture Units”) to increase the size of the Offering from up to $20,000,000 aggregate principal amount of Convertible Debenture Units to up to $26,000,000 (or up to $31,000,000, factoring in the full exercise of the Agents’ Option (as defined below)). The amendment will accommodate and include a broader group of investors. The Convertible Debenture Units will be sold at a price of $1,000 per Convertible Debenture Unit, with each Convertible Debenture Unit consisting of $1,000 principal amount of 9.0% secured convertible debentures (the “Convertible Debentures”) and 313 common share purchase warrants (the “Warrants”) of the Company. Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) an exercise price of $2.30 per Warrant Share (the “Exercise Price”) for a period of three years following the closing date of the Offering, subject to adjustment in certain events. The Convertible Debentures will be convertible into common shares of the Company at a conversion price of $1.60 per common share.

$9,315,000 of the proceeds raised from the Offering is anticipated to be raised from the participation of a number of the Directors of the Company or their associates. Convertible Debentures to be sold to insiders as part of the increased Offering aggregating $6,000,000 in principal amount will be subject to a higher conversion price of $1.68.

Canaccord Genuity Corp. is acting as lead agent in connection with the Offering on behalf of a syndicate of investment dealers, including Industrial Alliance Securities, Mackie Research Capital Corporation and Sprott Capital Partners (collectively, the “Agents”).

Pursuant to the terms of the Offering, the Agents have been granted an option (the “Agents’ Option”) to arrange for the sale of up to $5,000,000 of additional Convertible Debenture Units, which option is exercisable by the Agents at any time up until 8:00 a.m. (Eastern time) on the date prior to the closing the Offering.

The closing of the Offering is expected to occur on or about October 27, 2017, or such other date as the parties may agree upon. Other details of the Offering are disclosed in the Company’s press releases dated August 22, 2017 and September 21, 2017. There is no certainty that the Offering will be completed.

About Maricann Group Inc.

Maricann is a vertically integrated producer and distributor of marijuana for medical purposes. The company was founded in 2013 and is based in Toronto, Canada and Munich, Germany, with production facilities in Langton, Ontario, Canada where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada and Dresden, Saxony, Germany where the company has an option to purchase the Ebersbach facility. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 217,000 sq. ft. (20,159 sq. m) build out, to support existing and future patient growth.

For more information about Maricann, please visit our website at www.maricann.ca

The securities being offered pursuant to the Offering have not been, nor will they be, registered under the Securities Act and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Original press release: http://www.marketwired.com/press-release/maricann-provides-update-on-financing-cse-mari-2238221.htm

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