Eureka 93 Inc. Announces Private Placement Offering of $15 Million and Management and Directors Voluntary Lock-up

OTTAWA, Canada, August 6, 2019Eureka 93 Inc. (CSE: ERKA, “Eureka93” or the “Company”), one of North America’s largest hemp-derived cannabidiol (CBD) extraction and processing companies, today announced that the Company intends to raise up to CAD $15,000,000 (the “Offering”) of units. The first Closing will occur on or about August 9, 2019 (“Closing”). The Company has an option, exercisable in whole or in part at any time prior to the Closing date (as defined below) to issue an additional $5,000,000 of units at the issue price.

The Offering consists of equity units, and each unit of the Company consists of one common share of the Company (“Share”) and one of one common share purchase warrant (“Warrant”). The Offering is priced at CAD $1.20 per unit. Each Warrant shall be exercisable into one common share of the Company for a period of 24 months from Closing at an exercise price of CAD $1.40 per common share (the “Exercise Price”).

The net proceeds of the Offering will be used to fund further capital expansion to scale-up production and for general corporate purposes.

In conjunction with the Offering, the Board of Directors and management have agreed to a voluntary lock-up of 100% of their securities (common shares, options, warrants), for a period of six months from Closing (the “Voluntary Lock-up”).

The Offering is restricted to “accredited investors” and other exempt purchasers in certain provinces of Canada, in the United States and other such jurisdictions as may be agreed to by the Company by way of private placement exemptions from registration requirements subject to the receipt of necessary regulatory approvals. Private placements in the United States will be made pursuant to exemptions from the registration requirements under Rule 144A and/or Regulation D of the U.S. Securities Act of 1933. The Offering will also be made available to offshore investors pursuant to relevant prospectus or registration exemptions in accordance with applicable laws.

The Common Shares underlying the units will be subject to a hold period of four months following the Closing.

About Eureka93
Eureka93 is a multi-faceted CBD life sciences company with significant U.S. assets and operations, dedicated to the extraction, production, and distribution of CBD, a naturally occurring, non-psychoactive compound found in the hemp plant. With facilities in Eureka, Montana, Ottawa, Ontario, and Windsor, Ontario, the vertically integrated company is dedicated to producing the highest-quality CBD products for its customers. Eureka93 is a design-driven company for creative solutions in systems, products, packages and services. For more information visit, Eureka93.com

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements include all disclosures regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Often, but not always, forward-looking statements can be identified by the use of words or phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, and may be based on management’s current assumptions and expectations related to all aspects of the Company’s business, industry and the global economy. Further, the Company cautions that this foregoing list of material factors is not exhaustive and additional information identifying risks are detailed from time to time in the Company’s other continuous disclosure filings.

The forward-looking information contained in this press release represents expectations of the Company as of the date of this press release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable securities laws.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Eureka 93 Inc.

For more information:

Investors
Conrad Seguin
437.226.7002 or cseguin@eureka93.com

Media
Sónia Brum
647.338.7381 or sbrum@eureka93.com

Company
David Rendimonti, Chief Executive Officer
819.718.2042