WeedMD closes previously announced bought-deal offering for aggregate gross proceeds of $17,250,000, including full exercise of over-allotment option

WeedMD Inc. (CVE:WMD) (OTCQX:WDDMF) (FRA:4WE), a federally-licensed producer and distributor of medical-grade cannabis, said it has closed its previously announced, upsized ‘bought-deal’ offering of 35,937,500 units at a price of $0.48 each for aggregate gross proceeds of $17,250,000, including full exercise of the over-allotment option.

The company said it 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.

READ: WeedMD’s Starseed Medicinal releases strain-specific products for PAX ERA Vaporizer

Each unit in the offering is comprised of one common share of the company and one half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $0.60 each until March 12, 2023. If after the one-year anniversary of the closing of the offering the daily volume-weighted average trading price of WeedMD common shares on the TSX Venture Exchange is equal to or greater than $0.96 each for the preceding 10 consecutive trading days, the company will have the right to accelerate the expiry date of the warrants to a date that is 30 trading days following disclosing such an acceleration.

The company said it expects the warrants to commence trading on or about March 19, 2021.

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 by a syndicate of underwriters led by Eight Capital and Canaccord Genuity as the co-lead underwriters, along with INFOR Financial Inc.

At the end of February, WeedMD revealed that it will begin selling Pedro’s Sweet Sativa, strain-specific PAX ERA products to its Starseed Medicinal clients from March 6, 2021, as part of the launch of its latest Cannabis 2.0 offering, in partnership with cannabis vaporizer technology specialist PAX Labs Inc. 

The medical-grade cannabis company said its Starseed Medicinal-branded oil pods in award-winning strain-specific variants, using cannabis-derived terpenes produced in-house, will be available for purchase via its online medical store, while its adult-use Color Cannabis-branded PAX ERA pods are expected to be available through supply arrangements with provincial retailers, commencing in the second quarter of 2021. 

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