WeedMD Announces Amendments to Existing Credit Facility

Amendments to the terms of the Company’s $39 million senior secured credit facility provide WeedMD with greater financial flexibility

TORONTO, July 02, 2020 (GLOBE NEWSWIRE) -- 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 confirm it has signed an amendment to its senior secured credit facility entered into on March 29, 2019 (the “Credit Facility”) (the “Credit Agreement Amendment”). The Credit Agreement Amendment modifies the terms of the Credit Facility under which WeedMD secured up to $39 million of debt financing over a three-year term ending in 2022.

Under the terms of the Credit Agreement Amendment, the Company secured a deferral of its financial covenants by 12 months to June 30, 2021, and quarterly principal repayments have been rescheduled to commence in the first quarter of 2021. In addition, the Company has agreed to a 50 basis point increase in the applicable interest rate margin on the Credit Facility.

“WeedMD is forging ahead with a robust cultivation platform, a growing portfolio of branded products and a solid distribution network backed by a fortified balance sheet and strength of its non-dilutive, tier-one bank financing,” said Lincoln Greenidge, CFO of WeedMD. “We’re looking ahead into the second half of 2020 and beyond with confidence and financial discipline as we continue carving our profitability path.”

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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 CX Industries Inc., a wholly-owned subsidiary which specializes in cannabis extraction from the Company’s fully-licensed 26,000 sq. ft. Aylmer, Ontario processing facility. 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.