Core One Labs Inc. (CSE: COOL), (OTCQX: CLABF), (Frankfurt: LD6, WKN: A14XHT) (“COOL” or the “Company”) announces its board of directors has approved a proposed reduction in the exercise price of its outstanding share purchase warrants (the “Warrants”) from the current CAD$3.00 per share (on a post-consolidation basis) to CAD$1.25 per share (the “Warrant Repricing”).  Effectiveness of the proposed Warrant Repricing is subject to the unanimous approval of the registered holders of the Warrants.

The Warrants were issued as part of the Company’s oversubscribed May 9, 2019, non-brokered private placement (the “Offering”) of a total of 19,424,163 pre-consolidation units (the “Units”) (equal to approximately 3,237,361 post-consolidation Units). Each Unit sold as part of the Offering consisted of one common share of the Company (each a “Unit Share”) and one Warrant. Each Warrant entitles the holder to purchase one additional common share (a “Warrant Share”) at a pre-consolidation price of CAD$0.50 per Warrant Share, or a post-consolidation price of CAD$3.00 per Warrant Share for a period ending one May 9, 2020.

The board of directors of the Company considers the Warrant Repricing to be in the best interests of the Company and its shareholders, as the dilution that would result from the exercise of the Warrants, has already been accounted for and would result in additional proceeds to the Company of CAD$4,046,701, if fully exercised.  The expiry date of the Warrants will remain May 9, 2020. However, if, at any time after the Warrant Repricing becomes effective, the closing price of the Company’s common shares, as quoted by the Canadian Securities Exchange (the “Exchange”), is equal to or greater than CAD$1.56 per share for ten consecutive trading days, the expiration date of the Warrants will automatically be accelerated to the date that is 30 calendar days after the date of such ten consecutive trading day period.

Under the policies of the Exchange, the proposed Warrant Repricing is subject to the unanimous consent of the registered holders of the outstanding Warrants. To secure the required consents, the Company has sent out notice of the proposed Warrant Repricing to the registered holders of all of the Warrants. If any Warrant holders have not received written notice of the proposed Warrant Repricing, the Company encourages them to contact the Company’s investor relations personnel to have the notice and corresponding form of consent re-forwarded to them.

Brad Eckenweiler, the Company’s CEO, stated’ “We continue to implement our business plan and we believe that this proposed change will benefit shareholders including those that participated in the most recent private placement.  The decision to reduce the warrant price will bring them inline with the price of options that were granted to the Company’s management team without introducing unaccounted dilution.  While the cannabis market has become increasingly challenging, we believe that the continued execution of our business plan will translate into increased shareholder value.”

SOURCE Core One Labs Inc.