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WeedMD Inc. Closes $15 Million Bought Deal Private Placement

November 3, 2017


Toronto, ON -- Nov. 3, 2017 -- / D.M.O. Newswire / -- WeedMD Inc. (TSXV:WMD) (OTC:WDDMF) (FRA:4WE) has closed its previously announced bought deal private placement of 15,000 convertible unsecured debentures of the company at a price per convertible debenture of $1,000 for gross proceeds of $15-million with a syndicate of underwriters led by Eight Capital and including Haywood Securities and Mackie Research Capital. The convertible debentures shall bear interest at a rate of 8 per cent per annum from the date of issue, payable semi-annually in arrears on June 30 and Dec. 31, of each year. The convertible debentures have a maturity date of 24 months from the closing of the offering.


The convertible debentures will be convertible at the option of the holder into common shares of the company at any time prior to the close of business on the maturity date at a conversion price of $1.20 per share. At any time after March 3, 2018, the company may force the conversion of all of the principal amount of the then outstanding convertible debentures at the conversion price on 30 days prior written notice should the daily volume weighted average trading price of the shares be greater than $2, for any 10 consecutive trading days, and the volume traded during each VWAP day is not less than 50,000 common shares.


As consideration for its services, the underwriters received a cash commission equal to 6 per cent of the gross proceeds of the offering. The company also issued to the underwriters 375,000 compensation warrants. Each compensation warrant is exercisable into one common share at the conversion price for a period of 24 months following the closing of the offering.


The company will use the net proceeds of the offering for working capital and for production capacity expansion. The convertible debentures, including the shares issuable upon conversion thereof, are subject to a hold period in Canada expiring four months and one day from the closing of the offering.


About WeedMD Inc.:




WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis pursuant to the Access to Cannabis for Medical Purposes Regulations ("ACMPR"). The Company operates a 26,000 sq. ft. indoor facility in Aylmer, ON, with four acres of property for future expansion. WeedMD is focused on providing consistent, quality medicine to the long-term care, assisted living and seniors' markets in Canada through its specialized, comprehensive platform, and is dedicated to educating healthcare practitioners and furthering the public understanding of medical cannabis as a viable alternative to prescription medication - relieving a variety of chronic medical conditions and illnesses.



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