Breaking News: Pivot Pharma Closes C$5M Private Placement of Convertible Debentures

Pivot Pharmaceuticals Inc. (OTCQB: PVOTF) (CSE: PVOT) is pleased to announce the closing of its previously announced private placement of convertible debentures for aggregate gross proceeds of C$5 million (the “Offering”). The Company intends to use the net proceeds of the Offering for the development of its pipeline of products, intellectual property acquisitions, and for working capital and general corporate purposes.

Pursuant to the Offering, the Company issued a total of C$5 million of 10% senior secured convertible debentures (the “Convertible Debentures”) which will mature 12 months following the date of their issuance and will be convertible at the option of the holder for a period of 12 months into common shares of the Company ("Common Shares") at a conversion price of C$1.74 per Common Share (the "Conversion Price"), subject to adjustment of the Conversion Price in certain events.

Beginning on the date that is four months and one day following the issuance of the Convertible Debentures, the Company may force the conversion of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on not less than 30 days' notice should the daily volume weighted average trading price of the Common Shares be greater than C$2.50 for any 20 consecutive trading days on the Canadian Stock Exchange, or such other exchange as the Common Shares are principally traded.

In connection with the Offering, Origin Merchant Securities Inc. received a finder’s fee of C$300,000, being 6% of the gross proceeds from the Offering and 172,413 non-transferable compensation warrants, being 6% of the gross proceeds from the Offering divided by the Conversion Price. Each compensation warrant entitles the holder to purchase one Common Share at the Conversion Price for a period of three years following the Closing of the Offering. All securities issued in connection with the Offering are subject to a four month hold period. For further details on the Offering, please refer to the Company's news release dated February 27, 2018.

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