Name

Chrystal Capital

Chrystal Capital raises US$37 million for the Canadian Bioceutical Corporation

Chrystal Capital Partners LLP, the FCA regulated corporate finance boutique based in London, is pleased to announce that it has raised a further US$37 million of debt and equity for the Canadian listed Canadian Bioceutical Corporation, following on from the US$27 million raised in January 2017.

Chrystal Capital’s Special Situations team advises on private and public transactions with an emphasis on bespoke, esoteric opportunities demonstrating profitability and strong return potentials.

The Canadian Bioceutical Corporation (BCC) is a vertically integrated and established legal medical marijuana business, based in Toronto, Canada and listed on the Canadian Securities Exchange and the US OTC. Following the previous oversubscribed US$27 million private placement in January 2017, Chrystal Capital has raised a further US$37 million through a mixture of US$25 million debt and US$12 million equity. Chrystal Capital has now raised US$64 million for BCC to execute its roll up strategy in North America.

BCC has embarked upon an aggressive growth strategy that combines organic growth with acquisitions to become a branded multi-state marijuana operator. Since the first acquisition in Arizona in January, the company has subsequently acquired (or is acquiring) a further two dispensaries in Arizona, as it continues to consolidate one of the leading marijuana states in the US. It has also started to expand nationally, making acquisitions in Massachusetts, Nevada and Maryland (pending), markets with combined projected sales of US$1.9 billion p.a. by 2020. The focus is to build a highly profitable business with a footprint across the most attractive marijuana states in the US, that will ultimately attract larger purchasers such as big pharmaceutical, alcohol or tobacco companies. The speed of progress to date, both in terms of acquisition origination and execution, is a strong endorsement of the management team’s capabilities. Furthermore, BCC operates best-in-class extraction technologies, which enabled it to win the coveted 2016 Jack Herrer Cup for best hybrid concentrate.

Scott Boyes, CEO of BCC stated: “We are delighted to have raised a further US$37 million of growth capital following so quickly following on from the US$27 million raised by Chrystal Capital in January this year. We look forward to working closely with Chrystal Capital as we continue to execute our buy and build strategy and deliver shareholder value for our supportive investors.”

Kingsley Wilson, Partner at Chrystal Capital commented: “It is pleasing that our investors continue to recognise BCC’s path towards creating significant shareholder value through a buy and build strategy. Having financed BCC with US$64 million of expansion capital to date, we expect BCC to become one of the largest and most profitable players in the fast growing and exciting North American marijuana space.”

About Chrystal Capital

Chrystal Capital Partners LLP is an established, FCA regulated corporate finance firm with access to a global network of over 500 single family offices.

The firm specialises in being a trusted source of advisory services to the families, assisting them with their existing portfolio investments, whilst also reviewing new investment cases on their behalf. Opportunities are originated from both within the network and other trusted third parties. The families are based mainly in the UK, Western Europe, North America, GCC and South East Asia.

We are regularly approached for investment by companies who acknowledge our in-depth knowledge of the families asset allocations, thus providing a gateway to an alternative source of funding.

Chrystal is sector agnostic and has a global outlook.

For further information please contact Kingsley Wilson at kingsley.wilson@chrystalcapital.com or call +44 (0) 207 850 4761