InnoCan Pharma Corporation announced that it has entered into an agreement with Research Capital Corp. as the sole agent and sole bookrunner on a best efforts agency basis of up to 10,000,000 units of the company at a price of CAD 0.3 per unit for the aggregate gross proceeds of CAD 3 million on September 21, 2023. Each unit shall comprise one common share of the company and one common share purchase warrant of the company.

Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of CAD 0.36 for a period of 36 months from closing. The company will grant the agent an option to increase the size of the offering by up to 15% of the number of units by giving written notice of the exercise of the agent's option, or a part thereof, to the company at any time up to 48 hours prior to closing of the offering. The transaction is expected to close on October 10, 2023.

The transaction is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian Securities Exchange. The company has agreed to pay the agent a cash commission equal to 8% of the gross proceeds. The company will also pay the agent a corporate finance fee based on the aggregate gross proceeds of the offering, which will be satisfied by the issuance of units at the same offering price and on the same terms as those issued under the offering.