TORONTO, Sept. 04, 2019 (GLOBE NEWSWIRE) — WeedMD Inc. (“WeedMD” or the “Company”) (TSXV:WMD) is pleased to announce that is has entered into an agreement with Mackie Analysis Capital Corporation as the lead underwriter and sole bookrunner (the “Lead Underwriter”), on its personal behalf and on behalf of a syndicate of underwriters, like Haywood Securities Inc. (collectively with the Lead Underwriter, the “Underwriters”), pursuant to which the Underwriters have agreed to buy, on a purchased-deal basis, 10,000 convertible debenture units (the “Debenture Units”) for gross proceeds to the Enterprise of $10,000,000 (the “Offering”) at a cost of $1,000 per Debenture Unit.
Every Convertible Debenture Unit will consist of a single eight.five% unsecured convertible debenture (the “Convertible Debentures”) and 625 popular share buy warrants of the Enterprise (the “Warrants”). Every Warrant shall entitle the holder thereof to buy a single popular share in the capital of the Enterprise (a “Common Share”) at an physical exercise cost of $1.80 (the “Exercise Price”) at any time up to 36 months following Closing of the Providing. Supplied that if, at any time prior to the expiry date of the Warrants, the volume weighted typical trading cost of the Frequent Shares on the TSX Venture Exchange (the “Exchange”), or other principal exchange on which the Frequent Shares are listed, is higher than $three.60 for 20 consecutive trading days, the Enterprise may well, inside 15 days of the occurrence of such occasion, provide a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the “Accelerated Exercising Period”). Any unexercised Warrants shall automatically expire at the finish of the Accelerated Exercising Period.
The Convertible Debentures shall bear interest at a price of eight.five% per annum from the date of situation, payable semi-annually in arrears on the final day of June and December in each and every year and will mature 36 months from the date of issuance (the “Maturity Date”).
The principal quantity of each and every Convertible Debenture (the “Principal Amount”) shall be convertible, for no further consideration, into Frequent Shares at the selection of the holder at any time prior to the earlier of: (i) the close of company on the Maturity Date, and (ii) the company day right away preceding the date specified by the Enterprise for redemption of the Convertible Debentures upon a transform of manage at a conversion cost equal to $1.60 (the “Conversion Price”). The Enterprise may well force the conversion of the principal quantity of the then outstanding Convertible Debentures at the Conversion Cost on not a lot more than 60 days’ and not much less than 30 days’ notice must the each day volume weighted typical trading cost of the Frequent Shares on the Exchange be higher than $three.20 for the consecutive 20 trading days of the Frequent Shares on the Exchange preceding the notice.
The net proceeds from the Providing will be applied for operating capital and common corporate purposes.
The Debenture Units will be supplied by way of a quick kind prospectus to be filed in these provinces of Canada other than Quebec as the Underwriters may well designate pursuant to National Instrument 44-101 – Brief Kind Prospectus Distributions and may well be supplied in the United States on a private placement basis pursuant to an acceptable exemption from the registration specifications beneath applicable U.S. law. The Enterprise will use commercially affordable efforts to get the important approvals to list the Convertible Debentures, the Warrants, Compensation Alternative Shares, and the Frequent Shares issuable upon conversion of the Convertible Debentures, Warrants and Compensation Alternative Warrants on the TSX Venture Exchange.
The closing of the Providing is anticipated to happen on or about the week of September 25, 2019 (the “Closing”) and is topic to the Enterprise getting all important regulatory approvals, like the approval of the TSX Venture Exchange.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent corporation of WeedMD Rx Inc., a federally-licensed producer of cannabis merchandise for each the health-related and adult-use markets. The Enterprise owns and operates a 158-acre state-of-the-art greenhouse and outside facility positioned in Strathroy, ON. The Enterprise also operates CX Industries, a wholly-owned subsidiary of WeedMD Inc. CX operates out of the Company’s completely-licensed 26,000 sq. ft. Aylmer, Ontario production facility which specializes in cannabis extraction and processing. WeedMD has a multi-channeled distribution approach that consists of promoting straight to health-related sufferers, strategic relationships across the seniors’ marketplace and provide agreements with Shoppers Drug Mart as nicely as six provincial distribution agencies exactly where WeedMD’s adult-use brand Colour Cannabis is sold.
For additional info, please get in touch with:
Keith Merker, Chief Executive Officer
Tel: 519-765-2440 Ext. 222
E mail: [email protected]
To find out a lot more, pay a visit to us at www.weedmd.com
For Media Inquiries:
VP, Communications & Corporate Affairs
E mail: [email protected]
Original press release
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