WeedMD Inc. Announces Amendment of Bought Deal Equity Financing

TORONTO, March 02, 2021 (GLOBE NEWSWIRE) — WeedMD Inc. (“WeedMD” or the “Company”) (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE), a federally-licensed producer and distributor of medical-grade cannabis, announced today that, further to its press release dated February 11, 2021 announcing a $17.5 million bought deal financing (the “Offering”), the Company has entered into an amended and restated underwriting agreement dated March 2, 2021, with Eight Capital and Canaccord Genuity Corp., as joint bookrunners and co-lead underwriters (the “Co-Lead Underwriters”), and INFOR Financial Inc. (together with the Co-Lead Underwriters, the “Underwriters”) to amend the terms of the Offering to issue to the Underwriters 31,250,000 units of the Company (the “Units”) at a price per Unit of $0.48 (the “Issue Price”) for gross proceeds of $15,000,000. Each Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, “Warrant”). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.60, for a period of 24 months following the closing of the Offering.

The Company has amended the over-allotment option to allow for purchases by the Underwriters of up to an additional 4,687,500 Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional approximately $2,250,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be approximately $17,250,000.

If, after the one-year anniversary of the closing of the Offering, the daily volume weighted average trading price of the shares on the TSX Venture Exchange for any 10 consecutive days equals or exceeds $0.96, the Company may, upon providing written notice to the holders of the Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.

All other terms of the Offering remain unchanged.

The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes.

The Units will be offered by way of an amended and restated final short form prospectus to be filed in all provinces of Canada, except Quebec and Newfoundland. The closing date of the Offering is scheduled to be on or about March 12, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the applicable securities regulatory authorities.

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, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

About WeedMD Inc.

WeedMD Inc. is the publicly traded parent company of WeedMD RX Inc. and Starseed Medicinal Inc., licence holders producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility located in Strathroy, ON as well as a fully-licensed 26,000 sq. ft. Aylmer, ON processing facility, specializing in cannabis extraction. With the addition of Starseed, a medical-centric operator, WeedMD has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements WeedMD’s direct sales to medical patients. The Company maintains strategic relationships in the seniors’ market and supply agreements with Shoppers Drug Mart as well, as seven provincial distribution agencies where adult-use brands Color Cannabis and Saturday are sold.

Original press release

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