SpeakEasy Cannabis Club Ltd. (CSE: EASY) (Frankfurt: 39H)  is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement  for deemed aggregate gross proceeds of $6,356,000.95.  The Private Placement consisted of the issuance of 9,778,463 units of the Company at a price of $0.65 per Unit.   

Each Unit consists of one common share in the capital of the Company and one Common Share purchase warrant. Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $1.00 for a period of 24 months from closing. 

In connection with the completion of the Private Placement, the Company paid cash finders fees of $9,425 and issued 14,500 non-transferable broker warrants.  Each Broker Warrant entitles the holder to acquire one Common Share at an exercise price of $0.65 per share for a period of 24 months following closing.

1,538,461 Units, representing approximately $1,000,000 of the gross proceeds from the Private Placement, were issued to certain of the Company’s creditors in satisfaction of outstanding debt obligations.  It is anticipated that the net proceeds of the Private Placement will be used for working capital and general corporate purposes.

The securities issued by the Company under the Private Placement are subject to restrictions on resale in accordance with applicable securities laws.  These restrictions will expire on August 25, 2019.  The Private Placement is subject to final acceptance by the Canadian Securities Exchange.

About SpeakEasy Cannabis Club Ltd.:

SpeakEasy is a late stage applicant under the Access to Cannabis for Medical Purposes Regulations that is seeking to leverage three generations of farming experience in B.C. to produce high quality, small batch cannabis products once it obtains a license to do so.   The Company currently owns 290 acres of land in Rock Creek, British Columbia. The Company’s 10,000 square foot indoor facility will allow for the growth, production, and cultivation of small batch cannabis if and when the Company obtains a license from Health Canada. Construction has also commenced on an 80,000 square foot expansion facility.   Completion for the expansion is projected for Q2 2019.