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Entourage 16/09/2020

WeedMD Advances Strategic Growth Initiatives in the Adult-Use Market with New Color Cannabis Offerings

Exclusive new strain added to Color Cannabis line up; includes new vaporization and pre-roll product offerings; as well as new nitrogen-infused packaging

Toronto, Canada, September 15, 2020 – WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to provide a comprehensive update on its adult-use market initiatives to expand the market presence and share of its Color Cannabis and Saturday brands across Canada.

With the exclusive launch of renowned strain Black Sugar Rose, the introduction of a vaporization (vape) and pre-roll line, as well as new nitrogen-infused packaging, the Company is executing on its commercial growth plans.

“Since the beginning of the year, we’ve made great strides in accelerating our product innovation, further enhancing the market appeal of our Color and Saturday Cannabis brands, as well as expanding distribution to a discerning national consumer base that is ever evolving,” said Stephen Ng, Chief Commercial Officer of WeedMD. “With the introduction of an exclusive new strain, and new products, we are poised to continue delivering an unparalleled customer experience. We have the right team in place and are well-positioned to leverage our strengths and assets to accelerate our growth and deliver our highly-regarded products to consumers.”

Color Cannabis – New Product Strain, Expanded Portfolio And Packaging Innovation

  • Black Sugar Rose.Widely lauded in the Canadian cannabis industry for its genetics bank, WeedMD is pleased to bring to market Black Sugar Rose, a new Indica-dominant hybrid. The Company has successfully grown the renowned strain over two test cycles with favoured results. A cross of the Critical Mass and Black Domina strains, Black Sugar Rose is described as sweet and fruity with floral undertones and a cannabinoid profile expected to be between 18% to 23% THC. Color Cannabis Black Sugar Rose 3.5g flower will be available to consumers in the fall of 2020.
  • Color Cannabis Vapes.The Company is pleased to announce that the Color Cannabis brand product line now includes 510 thread vape products, giving consumers another way to consume our award-winning strains, commencing in the fall of 2020. The Color vape formulations are derived from Ghost Train Haze and our proprietary Pedro’s Sweet Sativa, preserving their terpene-rich flavours and cannabinoid profiles.
  • Color Cannabis Pre-Rolls.In response to consumer feedback, the Company is pleased to introduce strain-specific pre-roll products available as two-packs of 0.35g pre-rolls. The size and unit count reflects consumer preference for single-session pre-rolls. These brand-trial inspired pre-rolls are made with finely milled Ghost Train Haze and Pedro’s Sweet Sativa whole flower. The Color Cannabis pre-roll products will be available via provincial distributors and retail outlets starting in October 2020.
  • Nitrogen-Flushed Flower Pouches.With Canadian consumers expressing dissatisfaction with product bag appeal and packaging waste, WeedMD is transitioning its Color Cannabis whole flower products to nitrogen-flushed pouch packaging. Nitrogen reduces the degrading effects of the oxidation process – the primary factor in cannabis dryness. This will help preserve the aromatic terpenes and maintain the integrity of freshly packaged flower products. Additionally, the transition from plastic jars and cartons will reduce the total weight of packaging waste by over 80%. These newly-packaged Color Cannabis flower products are expected to be available starting in late October 2020.
  • Cannabis 2.0 Innovation.WeedMD’s adult-use strategy will also leverage the insights derived from its medical patients where access to products involve medical oversight and insurance coverage. Wellness and non-inhalable formats have been key insights leading to our strategic partnerships with innovative cannabis lines such as Mary’s Medicinals. The Company is exclusively bringing Mary’s premium line-up of award winning and innovative topicals and transdermal gels and patches to Canadian consumers when production starts later this year.

Scaling Up To Drive Market Presence And Share

  • Expanded Sales & Marketing Team. With its recently established national sales force supported by a trade marketing team, the Company is targeting retail markets to drive sales of Color Cannabis and Saturday brands across all provinces. Having reached the inflection point for the next leg of growth, WeedMD’s adult-use brands are now managed by a seasoned team with a combined 40 years’ experience in consumer packaged goods and regulated industries at leading global organizations such as PepsiCo, Kraft, Asahi International, JUUL Labs, and Rothmans Benson & Hedges.
  • Strengthening Relationships with Retailers. WeedMD is committed to collaborating with retailers across Canada for mutual success. In servicing its retail partners, the Company is offering private-label services similar to its recent commercial agreement with Fire & Flower, as well as providing unique consumer engagement tools. WeedMD has developed a platform to link cannabis brands and retailers by allowing sales representatives and retail store managers direct access to the full catalogue of Color Cannabis and Saturday promotional tools and product information.

Color Cannabis and Saturday will continue to leverage consumer-led insights to bring distinct products to market. WeedMD is well positioned for growth and is implementing a consumer-centric approach in its cultivation and production practices to capture consumer appeal in both retail and direct-to-patient markets via its wholly owned subsidiary Starseed Medicinal Inc.. With the upcoming outdoor harvest from its 27-acre field commencing this fall, WeedMD will be producing additional products at its extraction hub in Aylmer using low-cost, terpene-rich, cannabinoid-high biomass.

Information about upcoming corporate events including conference access and replays, where applicable, can be found here. Access WeedMD’s latest Investor Presentation here and Corporate Update Video here.

About WeedMD Inc.

WeedMD Inc. is the publicly-traded parent company of WeedMD RX Inc. and Starseed Medicinal Inc., federally-licensed producers of 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, Ontario as well as a fully-licensed 26,000 sq. ft. Aylmer, Ontario processing facility, specializing in cannabis extraction. With the addition of Starseed, a medical-centric operator based in Bowmanville, Ontario, WeedMD has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with other 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 six provincial distribution agencies where adult-use brands Color Cannabis and Saturday are sold.

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Forward Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD to implement its business strategies; the COVID-19 pandemic; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.


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