WeedMD Announces $15 Million Bought Deal Equity Financing

WeedMD is pleased to announce it has entered into a letter of engagement with Eight Capital, under which Eight Capital has agreed to purchase, as joint bookrunner and co-lead underwriter along with Canaccord Genuity Corp. (the “Co-Lead Underwriters”), 18,293,000 units of the Company (the “Units”), on a “bought deal” basis pursuant to a filing of a short form prospectus, subject to all required regulatory approvals, at a price per Unit of $0.82 (the “Issue Price”) for gross proceeds of $15,000,260 (the “Offering”).

The Company has agreed to grant Eight Capital an over-allotment option to purchase up to an additional 15% of the 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 $17,250,300.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $1.00, for a period of 24 months following the closing of the Offering. 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 $1.64, 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.

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

The closing date of the Offering is scheduled to be on or about March 3, 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.

Read the official press release here.

Access WeedMD’s 2021 Shareholder Newsletter here. The Company’s updated investor presentation and corporate deck can be found here.