WeedMD Closes Definitive Agreement for $30 Million Credit Facility with LiUNA Pension Fund

• Non-dilutive financing to fund continued growth and accelerate sales of Color Cannabis adult-use products and Starseed’s unique medical service offerings to payor groups and patients
  
  
• Management to host conference call on October 1, 2020 at 10 a.m. EST
  

TORONTO, Sept. 30, 2020 (GLOBE NEWSWIRE) -- WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of cannabis, is pleased to announce that, further to the press release dated September 23, 2020, it has closed a definitive agreement for a $30 million credit facility (“Credit Facility”) with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (“LPF”). The Credit Facility, maturing in August 2022, will be used for general working capital purposes, capital expenditures and general corporate requirements, and will provide the Company with significant financial capacity to drive commercial initiatives during its next stage of growth.

“With our facilities fully ramped up, licensed and engaging in the quality-production of cannabis to a degree not seen before at WeedMD, we are officially in our next stage of growth and ready to execute our product strategy and continued expansion of our distribution networks,” said Angelo Tsebelis, CEO of WeedMD. “The added support from our partner and strategic investor, LiUNA Pension Fund, provides us with significant non-dilutive financing which will enhance our liquidity position and provide additional working capital to drive sales and generate sustainable profitability as we drive towards closing out our first year as a fully-integrated company alongside Starseed Medicinal.”

WeedMD further outlined its commercial plans for the adult-use market, read here and recently announced it is optimizing its direct-to-patient medical sales channels under one unified Starseed marketplace, read here.

The interest rate for the Credit Facility is set at 15% with the option, at the Company’s discretion, to capitalize interest in lieu of cash payments of interest. The Credit Facility is secured by the assets of the Company and its subsidiaries, including the Company’s production facilities, and contains customary financial and other covenants, as well as typical conditions precedent for a transaction of this nature. LPF’s security under the Credit Facility is in second position to the Company’s senior creditor. Additional details about the Credit Facility will be available in the Company’s filings which are available under its profile on SEDAR at www.sedar.com following the closing.