Pivot Pharmaceuticals Inc. (CSE: PVOT) (OTCQB: PVOTF) (FRA: NPAT) is pleased to announce that it has closed a non-brokered Private Placement for a total of C$1,641,300 and has also settled C$1,500,000 of outstanding debt with the issuance of common shares and share purchase warrant. Proceeds of the Private Placement will be used for general working capital purposes, capital expenditures and patent costs.

Private Placement

The Company issued 4,103,250 units at a price of C$0.40 per Unit for gross proceeds of C$1,641,300. Each Unit consists of one common share and one common share purchase warrant. Each Warrant is exercisable for one Common Share for a period of three years from the date of issuance at an exercise price of C$0.60. The Common Shares and Warrants will be subject to resale restrictions for a period of four months and one day from the date of issuance.

In connection with the closing of the Private Placement, Hampton Securities Limited, Industrial Alliance Securities Inc., and certain other finders received an aggregate cash commission of $88,904 representing commissions of up to 8% of the gross proceeds raised by such finders, and 222,260 agent warrants, representing 8% of the gross number of Units raised.

Debt Settlement

The Company has settled C$1,500,000 principal amount of its outstanding 10% senior secured convertible debentures March 2, 2019 through the issuance of an aggregate 3,750,000 common shares of the Company at a deemed price of $0.40 per share and 3,750,000 common share purchase warrants, together with an amount payable in cash equal to the interest that the Debenture holders would have received in respect of the Settlement Amount if it remained outstanding to maturity. Each warrant is exercisable for one common share of the Company for a period of three years from the date of issuance at an exercise price of C$0.60. The Settlement Shares and Settlement Warrants will be subject to resale restrictions for a period of four months from the date of issuance. As part of the satisfaction of the Settlement Amount, the conversion price of the remaining principal amount of the Debentures has been adjusted to C$0.42, being the closing price of the common shares of the Company on the Canadian Securities Exchange on the last trading preceding the date of the debt settlement.   

About Pivot Pharmaceuticals Inc.

Pivot Pharmaceuticals Inc. is a biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies. Pivot’s wholly-owned medical cannabis products division, Pivot Green Stream Health Solutions Inc. conducts research, development and commercialization of cannabinoid-based nutraceuticals and pharmaceuticals. Pivot’s wholly-owned U.S. subsidiary, Pivot Naturals, LLC, based in Costa Mesa, California, will manufacture and supply finished powderized cannabis products such as food additives, capsules, bulk powder and stick packs to the California market. PGS has acquired “RTIC” Ready-To-Infuse Cannabis oil-to-powder technology and Thrudermic Transdermal Nanotechnology; acquired worldwide rights to BiPhasix™ Dermal Drug Delivery platform technology, Solmic Solubilisation technology, and Solumer™ Oral Drug Delivery technology; and an option to acquire worldwide rights to TriVair™ Nasal and Pulmonary Breath-Propelled Drug Delivery Systems™ for the delivery and commercialization of cannabinoid, cannabidiol, and tetrahydrocannabinol-based products.