CANNAINVESTOR Magazine October / November 2016 - Page 90

A brokered private placement of subscription receipts (the "Brokered Subscription Receipts") for gross proceeds of a minimum of $8,000,000. Each Brokered Subscription Receipt will be sold at a price of $1.15 per Brokered Subscription Receipt and will be exchanged for a unit of the Company (a "Brokered Unit"). The Broker Units will have the same terms as the Units (the "Brokered Placement"). The Company will pay a commission of 8.0% of the gross proceeds of the Brokered Placement on the closing of the offering to the Agent (as defined below). The Agent will receive units (the "Commission Units") of the Company at a deemed price equal to the Offering Price. The Commission Units will have the same terms as the Broker Units;

A brokered offering of units for gross proceeds of up to $2,000,000 by way of a TSX Venture Exchange ("TSX-V") Short Form Offering Document (the "SFOD"). The terms of the SFOD will be determined in the context of the market and will be announced in due course; and

All of the proceeds from the Financings will be released to the Company at closing of the Qualifying Transaction which is anticipated to occur in November 2016. The net proceeds from the Financings will be used as working capital and to execute Emblem's Phase 3, 9,500kg facility expansion.

if you would like to know more about the Offering and would like to participate please contact:

Danny Brody, Corporate Development at dannybrody@emblemcorp.com.

Emblem Update:

Emblem has achieved a number of important business milestones during Q3, and continuing into Q4, including:

Receipt of our distribution license from Health Canada allowing Emblem to sell cannabis products to the public;

Developing a number of premium strains of cannabis that will allow Emblem to offer a wide range of high quality choices to patients as Emblem ramps up its production capacity;

Establishing a development plan for Emblem's entire campus in Paris, Ontario based upon pre-engineered buildings and pre-fabricated growing rooms (in clean room format) that will allow very rapid expansion of production capacity to meet increasing demand from both the medical market and the anticipated recreational market; and

Launching Emblem's first major expansion of its production facility to over 9,500kgs for phase 3, bringing its total production capacity to 11,600kg. In addition to Phase 3, Emblem has plans for phase 4 which will bring its total production capacity to over 21,100kgs.

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