DionyMed Brands Inc. Announces Closing of Oversubscribed Bought Deal Financing for C$10.5 Million in Gross Proceeds

TORONTO, May 7, 2019 /CNW/ – DionyMed Brands Inc. (“DionyMed” or the “Company“) (CSE: DYME; OTCQB: DYMEF), a multi-state cannabis brands, distribution and direct-to-consumer delivery platform, has completed its previously announced bought deal private placement financing for total gross proceeds of approximately C$10.5 million (the “Offering“). In connection with the Offering, the Company issued 3,822,055 units (the “Units“) at a price of C$2.75 per Unit (the “Issue Price“). Each Unit was comprised of one subordinate voting share (a “Subordinate Voting Share“) and one subordinate voting share purchase warrant (a “Warrant“) exercisable into one Subordinate Voting Share (a “Warrant Share“) at a price of C$3.80 per Warrant Share until May 7, 2022. The net proceeds from the Offering will be used primarily towards the Company’s strategic growth initiatives and for general working capital purposes.

Canaccord Genuity Corp. and Cormark Securities Inc. co-led a syndicate of underwriters, which included Beacon Securities Limited (collectively, the “Underwriters“) in the Offering. In connection with the Offering, the Company paid the Underwriters a cash commission equal to 7.0% of the gross proceeds of the Offering and issued to the Underwriters that number of broker warrants (“Broker Warrants“) as is equal to 7.0% of the number of Units sold under the Offering.  Each Broker Warrant is exercisable to acquire one Unit until May 7, 2022 at an exercise price equal to the Issue Price.

In connection with the Company’s late filing of its audited financial statements and management’s discussion and analysis for the year ended December 31, 2018 (the “Annual Financial Statements“), the Company’s previously announced application for a management cease trade order under National Policy 12-203 – Management Cease Trade Orders has been granted by the British Columbia Securities Commission.  As previously disclosed, the Company expects to file the Annual Financial Statements on or before May 31, 2019.

About DionyMed

Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at dionymed.com and follow @DYME_Inc on Twitter and LinkedIn.

Forward-Looking Information and Statements

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved” and includes the use of proceeds of the Offering and the timing of the filing of the Annual Financial Statements.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements, including but not limited to the Company using the proceeds of the Offering in a different manner than set out above, the Company not filing the Annual Financial Statements on the timing described herein, and the risk factors set out in the Listing Statement of the Company available on the Company’s profile on SEDAR at www.sedar.com.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

SOURCE DionyMed Brands Inc.

For further information: Edward Fields, CEO, [email protected], 669-232-5270; Peter Kampian, CFO, [email protected], 647-948-8387; Investor Contacts: Phil Carlson / Erika Kay, KCSA Strategic Communications, Phone: (212) 896-1233, Email: [email protected] / [email protected]; Media Contacts: Kate Tumino / Brittany Tibaldi, KCSA Strategic Communications, 212-896-1252 / 347-487-6794, [email protected] / [email protected]

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.