Wikileaf Closes $6.8 Million Financing

The company has also filed a Preliminary Prospectus Offering in connection with the listing of its common shares on the Canadian Securities Exchange.

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SEATTLE, May 30, 2019 (Newswire.com) - PRESS RELEASE - Wikileaf Technologies Inc. has announced the closing of its reverse takeover transaction with One Web Services Inc., the owner and operator of the Seattle-based cannabis price comparison website Wikileaf.com. As part of the transaction, Wikileaf has completed its previously announced private placement of approximately C$6.8 million.

Wikileaf.com is a leading price comparison platform that assists cannabis consumers to find location-based pricing information about individual marijuana strains, brands and products--at the critical moment when they are deciding where to spend their money. With over 1.6 million monthly visits tied to specific geographical locations, Wikileaf will enable dispensaries and cannabis brands to use its free digital listing services to further engage with consumers, through targeted advertising to cannabis users in their immediate area. Brands can use Wikileaf to promote their unique products, strains and services, as well as amplify their visibility and reach.

On the closing of the transaction, Dan Nelson was appointed as the president and chief executive officer of the company. Chuck Rifici was appointed chair of the company. Manoj Hippola was appointed the chief financial officer and corporate secretary of the company and Patrick Lalonde was appointed as the company’s chief operating officer. The Board of Directors of the company includes Rifici (chair), Nelson, Hippola, Megan Sanders, Joshua Babyak, Cy Scott and Connor Cruise.

The transaction was completed by way of merger between a wholly owned subsidiary of the company and OWS. Under the terms of the transaction:

  • the outstanding common shares and preferred shares of OWS were exchanged for common shares of the company on the basis of 9.8078 common shares for each OWS Share; and
  • the outstanding stock options of OWS were exchanged for common shares on the basis of the exchange ratio.

As part of the transaction, the company also completed a non-brokered private placement offering of common shares for an aggregate gross proceeds of approximately C$6.8 million at a price of $0.50 per common shares. The net proceeds received by the company from the financing will be used for product development, and for working capital and general corporate purposes.

Following the closing of the transaction, the company has also filed its long-form non-offering preliminary prospectus. The prospectus has been filed with the securities regulatory authorities in each of the provinces of Alberta, British Columbia and Ontario. The company has applied to list the common shares on the Canadian Securities Exchange (CSE), with listing subject to the company fulfilling the CSE's listing requirements.

The prospectus also qualifies the distribution of 13,696,000 common shares of the company to holders of 13,696,000 subscription receipts of the company. The subscription receipts were issued on March 29, 2019 and May 13, 2019 at a price of $0.50 per subscription receipt.

Concurrent with the prospectus being reviewed by the Ontario Securities Commission (OSC), the company has reserved "WIKI" as its ticker symbol on the CSE. However, there can be no guarantee that the OSC will issue a receipt for the company's final prospectus or that the CSE will accept the listing of the common shares. A copy of the prospectus is available on SEDAR at www.sedar.com.

"As more jurisdictions around the world move towards legalizing medical and recreational adult cannabis use, we see the industry and investment opportunities also moving toward ancillary cannabis services. We feel that Wikileaf provides an opportunity for both cannabis consumers and small to medium-size businesses, from dispensaries to brands, to communicate and exchange valuable data that will allow consumers to access better information and analytics for businesses to further understand their consumers’ needs," said Rifici.