NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
TORONTO, Jan. 11, 2018 (GLOBE NEWSWIRE) -- WeedMD Inc. (TSX-V:WMD)
(“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical cannabis,
is pleased to announce that it has closed its previously announced short form prospectus offering, including the full exercise of
the over-allotment option. As such, a total of 16,046,511 units of the Company ("Units") were sold at a price of
$2.15 per Unit (the "Issue Price") for aggregate gross proceeds of $34,500,000 (the "Offering").
The Offering was completed by a syndicate of underwriters including Eight Capital as sole bookrunner and co-lead underwriter with
Mackie Research Capital Corporation and including Haywood Securities Inc. (the "Underwriters").
Each Unit consists 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 $2.90, until January 11, 2020. If, following the closing of the Offering, the
volume weighted average price of the Common Shares on the TSX Venture Exchange is equal to or greater than $4.20 for any 20
consecutive trading days, the Company may, upon providing written notice to the holders of Warrants, accelerate the expiry date of
the Warrants to the date that is 30 days following the date of such written notice.
As consideration for its services, the Underwriters received a cash commission equal to 6% of the gross proceeds
of the Offering. The Company also issued 481,395 compensation options to the Underwriters in an amount equal to 3% of the number of
Units issued pursuant to the Offering. Each compensation option is exercisable into one Unit at the Issue Price, until January 11,
2020.
The Company intends to use the net proceeds of the Offering to expand its lease footprint and retrofitting plans
and operations at its 14-acre Strathroy Greenhouse, to purchase and further develop its Aylmer Facility, to pursue potential
strategic domestic and international opportunities and for working capital and general corporate purposes. For more about the
expansion, read here.
The Units were offered and sold by way of a short form prospectus filed in each of the provinces of Canada,
excluding Quebec, and offered and sold elsewhere outside of Canada on a private placement basis.
The securities referred to in this news release have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons absent registration under the 1933 Act or an applicable exemption from
such registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation
for offers to buy any securities. “United States” and “U.S. person” are as defined in Regulation S under the 1933 Act.
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, and is awaiting its second-site cultivation license for its
greenhouse facility located in Strathroy, Ontario, representing 610,000 sq. ft. or 14 acres under glass. WeedMD has entered into
supply agreements in addition to strategic relationships with established cannabis brands. The Company is focused on providing
medical cannabis to the senior’s market including long-term care and assisted living markets in Canada through its proprietary
implementation platform. It is dedicated to educating healthcare practitioners and furthering public understanding of the role that
medical cannabis plays - including as it pertains to regulatory requirements, indications and potential side effects.
Follow WeedMD On:
Facebook: https://www.facebook.com/weedmd/
LinkedIn: https://www.linkedin.com/company-beta/5020743/
Twitter: https://twitter.com/WeedMD
Instagram: https://www.instagram.com/weedmd/
For further information, please contact:
WeedMD Inc.
Keith Merker, Chief Financial Officer
Tel: 519-765-2440 Ext. 222
Email: investor@weedmd.com
To learn more, visit us at www.weedmd.com
For Media Inquiries:
Marianella delaBarrera
Margin Communications & Public Relations
Tel: 416-897-6644
Email: marianella@marginpr.com
Forward-Looking Information
This press release contains forward-looking information based on current expectations. Statements about the
intended use of proceeds, among others, are forward-looking information. These statements should not be read as guarantees of
future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements to be materially different from those implied by such statements. The Company assumes
no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by
law.
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