TORONTO, Feb. 22, 2018 (GLOBE NEWSWIRE) -- Newstrike Resources Ltd. (TSXV:HIP) (“Newstrike” or the “Company”) is pleased to announce that the previously announced over-allotment option permitting the underwriters to acquire an additional 9,091,500 Units at $1.32 per Unit (the “Over-Allotment Option”) has been exercised in full, providing Newstrike with additional gross proceeds of $12,000,780.  The Over-Allotment Option was issued in conjunction with the Company’s previously announced short form prospectus offering of 60,610,000 units (“Units”) at $1.32 per Unit (the “Offering”) which closed on February 16, 2018.  The exercise of the Over-Allotment Option increases the total gross proceeds of the Offering to $92,005,980.  All Units were sold pursuant to an underwriting agreement with a syndicate of underwriters co-led by INFOR Financial Inc. and Cormark Securities Inc. and including Eight Capital and Haywood Securities Inc.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one additional Common Share at an exercise price of $1.75 until February 16, 2020. In the event that the volume weighted average trading price of the Common Shares for ten (10) consecutive trading days exceeds $2.60, the Company shall have the right, subject to the approval of the TSX Venture Exchange (the “TSXV”), to accelerate the expiry date of the Warrants upon not less than fifteen (15) trading days’ notice. The Company has applied to list the Warrants for trading on the TSXV.

As part of the Over-Allotment Option, the underwriters also received an aggregate of 545,490 compensation options. Each compensation option entitles the holder thereof to acquire one Unit at $1.32 per Unit until February 16, 2020.

Update on Licensing of Niagara Facility

Newstrike’s wholly-owned subsidiary, UP Cannabis Inc. (“Up” or “Up Cannabis”), a licensed producer under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”), has been informed by Health Canada’s Office of Medical Cannabis that it has completed the paper-based review of Up’s application for licensing of the first phase of its Niagara Facility, Up’s principal cultivation and production facility, located in Ontario’s Niagara Region.  With the documentary review completed, the licensing process for the Niagara Facility now advances to verification by Health Canada of the functionality, physical and security-related compliance of this recently retrofitted 200,000 s.f. facility, of which approximately 160,000 s.f. is dedicated to production.  Up believes that this next step will proceed as scheduled and production at the Niagara Facility will commence in the Summer of 2018, with construction of additional manufacturing, packaging and administrative facilities expected to be completed in the fourth quarter of 2018.  Further expansion of the Niagara Facility is already underway which, upon completion of all construction and receipt of all requisite regulatory and operational approvals, is expected to double the initial projected annual capacity from approximately 12,500 kg to a projected annual total of approximately 25,000 kg.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.

For further information, please contact

Jay Wilgar 
Chief Executive Officer 
Newstrike Resources Ltd. 
905.844.8866 ext 21

About Newstrike and Up Cannabis

Newstrike is the parent company of UP Cannabis Inc. (“Up Cannabis”), a licensed producer of cannabis that received its cultivation license on December 19, 2016, and was granted an amendment to begin sales on January 5, 2018. Up Cannabis is in turn the parent company of Up Cannabis Niagara Inc. Newstrike, together with its strategic partners, including Canada’s iconic musicians, The Tragically Hip, is developing a diverse network of high quality cannabis brands. For more information visit or

Forward-Looking Information

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Newstrike to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to the over-allotment option and the listing of the Warrants for trading on the TSXV, licensing and expansion plans for the Niagara Facility. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date.

Newstrike does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.