WeedMD Inc announces C$15mln financing to expand production capacity

Medical cannabis firm WeedMD Inc (CVE:WMD) has announced a C$15mln financing to be used for working capital and to expand its production capacity.

Eight Capital has agreed to buy, along with a syndicate of underwriters including Haywood Securities Inc and  Mackie Research Capital Corp 15,000 convertible unsecured debentures at C$1,000 each.

The debentures shall bear interest of 8% per year, payable semi-annually in arrears on June 30 and December 31 each year, and mature 24 months from the closing date.

They will be convertible into WeedMD shares at any time prior to the close of business on the maturity date at C$1.20 each.

The underwriters will receive a commission equal to 6% of the gross proceeds of the offering.

They will also receive compensation warrants equal to 3% of the gross proceeds divided by the conversion price, with each warrant being exercisable into one share at the conversion price for two years after closing.

Story by ProactiveInvestors