2018-01-10 17:21 ET - News Release

Mr. Robert Abenante reports

ABATTIS SUCCESSFULLY CLOSES $6.9 MILLION PRIVATE PLACEMENT AND ANNOUNCES NEW $8 MILLION PRIVATE PLACEMENT

Abattis Bioceuticals Corp., further to its news release dated Jan. 4, 2018, has successfully closed its non-brokered private placement of units for gross proceeds of $6.9-million.

"Abattis has once again oversubscribed its private placement," said Rob Abenante, president and chief executive officer of Abattis. "The company is thrilled to see the tremendous appetite for its shares and support for its vision in this rapidly evolving industry."

"Given the significant oversubscription we will once again be conducting another private placement in order to fill orders for strategic and loyal shareholders who have and continue to support the company. The capital will further be used to organically grow its existing business and execute strategic acquisitions in an effort to continue our rapid growth."

Closing of private placement

In connection with the closing of the private placement, the company utilized its overallotment provision and issued 15,681,816 units at a price of 44 cents per unit, for gross proceeds of $6.9-million. Each unit consists of one common share of the company and one-half of one common share purchase warrant of the company, with each warrant entitling the holder to purchase an additional share for a period of 36 months at an exercise price of 65 cents, subject to acceleration in the event that the shares trade above 75 cents for 10 consecutive trading days.

In connection with the closing of the private placement, the company paid finders' fees on certain subscriptions of 7 per cent cash totalling $10,712.79 and issued 24,347 finders' warrants, representing 7 per cent of the units placed by the finders. Each finder's warrant entitles the holder to purchase one share of the company at 65 cents per share, under the same terms as the warrant in the private placement.

Announcement of new private placement of up to $8-million

Abattis is also pleased to announce that it is undertaking another non-brokered private placement for gross proceeds to the company of up to $8-million.

The company will issue up to an aggregate of 13,333,333 units at a price of 60 cents per unit. The company reserves an overallotment option to increase the new private placement by up to 15 per cent (or up to $9.2-million). Each unit will consist of one share and one-half of one warrant. Each warrant will be exercisable for one share for a period of three years from the closing date of the new private placement at an exercise price of 85 cents per share. In the event that the shares trade at a price per share on the Canadian Securities Exchange (or such other exchange on which the shares may be traded at such time) of greater than $1 for a period of 10 consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof (by disseminating a press release advising of the acceleration of the expiry date of the warrants), and, in such case, the warrants will expire on the 30th day after the date of such notice.

Each purchaser under the new private placement will be required to complete a subscription agreement, which confirms, among other things, the availability of an exemption from the prospectus requirements of applicable securities laws in respect of the sale of units to such purchaser. Eligible shareholders wishing to participate in the new private placement are invited to contact the company to obtain a subscription agreement.

The company intends to use the proceeds from the private placement and the new private placement to pursue strategic assets, expand its laboratory business, expand its extraction technology business, and for working capital and general corporate purposes.

About Abattis Bioceuticals Corp.

Abattis is a life sciences and biotechnology company which aggregates, integrates and invests in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. The company has successfully developed and licensed natural health products, medicines, extractions and ingredients for the biologics, nutraceutical, bioceutical and cosmetic markets. The company is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds.