WeedMD Announces Closing of $17.25 Million Bought Deal Offering

TORONTO, March 12, 2021 (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 announce it has closed its previously announced bought deal short-form prospectus offering of 35,937,500 units (“Units”) at a price of $0.48 per Unit for aggregate gross proceeds of $17,250,000, including full exercise of the over-allotment (the “Offering”). The syndicate of underwriters was led by Eight Capital and Canaccord Genuity Corp. as the co-lead underwriters, along with INFOR Financial Inc. (collectively, the “Underwriters”). The Units were offered and sold by way of a short-form prospectus filed with the securities commissions in each of the provinces of Canada, other than Quebec and Newfoundland.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.60 per Common Share until March 12, 2023. If after the one-year anniversary of the closing of the Offering the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange (“TSXV”) is equal to or greater than $0.96 per Common Share for the preceding 10 consecutive trading days, the Company shall have the right to accelerate the expiry date of the Warrants to a date that is 30 trading days following the date of the Company issues a press release disclosing such acceleration.

The TSXV has conditionally approved the listing of: (i) the Common Shares and the Warrants issued pursuant to the Offering, (ii) the Common Shares issuable upon exercise of the Warrants, and (iii) the Common Shares and Warrants forming part of the compensation units issued to the Underwriters in connection with the Offering. Listing will be subject to the Company fulfilling all of the listing requirements of the TSXV. The Company expects the Warrants to commence trading on or about March 19, 2021.

The Company intends to use the net proceeds of the Offering to accelerate its growth plans through the use of sales and marketing initiatives, increasing operational capacity and additional product development initiatives.

The securities mentioned herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.