Chinook Closes $1.5 Million Canadian Dollar Series A Private Placement

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Chinook Insiders are the largest investors in the Series A financing as its German
subsidiary expands in the European medical cannabis industry
BERLIN, Germany, June 12th, 2019 – Chinook Tyee Industry Limited (“Chinook”) (TSXV:
XCX), (Frankfurt: C4T, ISIN: CA16961T2083) completed its Series A non-brokered placement
(Private Placement) of 10,000,000 Common Shares at a subscription price of $0.15 per Common
Share (Common Shares), raising $1,500,000, which Chinook intends to use for working capital
purposes. All securities issued pursuant to the Private Placement will be subject to a four-month
hold period, which will expire on October 13, 2019.
“Our Series A financing was oversubscribed and we thank investors in Germany and Canada for
their support,” said Mr. Alex Blodgett, CEO of Chinook. “Chinook’s insiders invested the
maximum level allowed and are excited about developments ahead.”
Chinook paid a cash finder’s fee of $16,189.25 and issued 107,928 finder’s warrants (each, a
“Finder’s Warrant”) to PI Financial Corp., and paid a cash finder’s fee of $19,845.00 and issued
132,300 Finders Warrants to General Research GmbH. Each Finder’s Warrant entitles the holder
thereof to acquire one additional Common Share at a price of $0.15 for a period of six months
from the date of issuance.
The Private Placement constitutes a related party transaction within the meaning of Multilateral
Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-
101”), as insiders of Chinook subscribed for an aggregate of 2,536,842 Common Shares for gross
proceeds of $380,526. Chinook is relying on the exemptions from the formal valuation and
minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Private Placement by
insiders did not exceed 25% of the market capitalization of Chinook, as determined in accordance
with MI 61-101. Chinook did not file a material change report in respect of the related party
transaction at least 21 days before the closing of the Private Placement as the details of the
participation by related parties of Chinook were not settled until shortly prior to the closing of the
Private Placement.