WeedMD Shareholders Approve the $25 Million Strategic Equity Investment, Subscription Receipts Exercise from LiUNA Pension Fu...
05 February 2020 - 2:49AM
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
that its shareholders voted in favour of the resolutions
(“Shareholder Resolutions”) approving; 1) the private placement and
exercise of subscription receipts (the “Subscription Receipts”)
with the LiUNA Pension of Central and Eastern Canada (“LPF”) for
gross proceeds of $25 million, which was completed as part of
WeedMD's acquisition of Starseed Holdings Inc. ("Starseed"); and 2)
the board nomination rights and voting covenants with certain
shareholders of the Company. With the approvals, the Subscription
Receipts automatically convert into 23,079,763 WeedMD common shares
and results in the creation of a new control person as defined
under the applicable policies of the TSX Venture Exchange
(“TSX-V”).
The two WeedMD Shareholder Resolutions were
approved by 99.3% and 99.1% respectively, by votes cast by eligible
shareholders either in person or represented by proxy at the
meeting in accordance with the requirements of the TSX-V.
“The overwhelming vote in favour of this
transaction and the $25 million equity investment has fortified
WeedMD’s balance sheet and provides accretive capital to execute
growth initiatives for the Company’s long-term success,” said
George Scorsis, Executive Chairman of WeedMD. “On behalf of WeedMD
and Starseed, I’d like to thank our shareholders, employees,
customers and patients for their confidence in the newly-integrated
Company and in our partner, LiUNA Pension Fund. Together we will
build continued value and stability for all our stakeholders.”
Access WeedMD’s investor presentation here.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent
company of WeedMD Rx Inc., a federally-licensed producer of
cannabis products for both the medical and adult-use markets. The
Company owns and operates a 158-acre state-of-the-art greenhouse,
outdoor and processing facility located in Strathroy, Ontario.
WeedMD also operates CX Industries Inc., a wholly-owned subsidiary
of WeedMD Inc., from the Company’s fully-licensed 26,000 sq. ft.
Aylmer, Ontario production facility which specializes in cannabis
extraction and processing. With the recent acquisition of Starseed
Medicinal Inc., a medical-centric licensed holder with operations
in Bowmanville, Ontario, WeedMD has expanded its multi-channeled
distribution strategy. Starseed’s industry-first, exclusive
partnership with LiUNA, the largest construction union in Canada,
along with other employers and union groups complements WeedMD’s
direct sales to medical patients. The Company maintains strategic
relationships across the seniors’ market and supply agreements with
Shoppers Drug Mart as well as six provincial distribution agencies
where its adult-use brands Color Cannabis and Saturday are
sold.
Follow WeedMD, Color Cannabis &
Starseed:
Facebook:
https://www.facebook.com/weedmd/LinkedIn:
https://www.linkedin.com/company/weedmd/?originalSubdomain=frTwitter:
https://twitter.com/WeedMDInstagram:
https://www.instagram.com/weedmd/
Instagram: https://www.instagram.com/callitcolor/
&
Instagram: https://www.instagram.com/starseedca/
For further information, please
contact:
For Investor Enquiries:Stephen
NgChief Strategy OfficerEmail: investor@weedmd.com
For Media Enquiries:Marianella
delaBarreraVP, Communications & Corporate AffairsTel:
416-897-6644Email: marianella@weedmd.com
To learn more, visit us at www.weedmd.com
Forward Looking Information
This press release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation which are based upon WeedMD's current internal
expectations, estimates, projections, assumptions and beliefs and
views of future events. Forward-looking information can be
identified by the use of forward-looking terminology such as
"expect", "likely", "may", "will", "should", "intend",
"anticipate", "potential", "proposed", "estimate" and other similar
words, including negative and grammatical variations thereof, or
statements that certain events or conditions "may", "would" or
"will" happen, or by discussions of strategy.
The forward-looking information in this news
release is based upon the expectations, estimates, projections,
assumptions and views of future events which management believes to
be reasonable in the circumstances. Forward-looking information
includes estimates, plans, expectations, opinions, forecasts,
projections, targets, guidance or other statements that are not
statements of fact. Forward-looking information in this news
release include, but are not limited to, statements with respect to
internal expectations, expectations with respect to actual
production volumes, expectations for future growing capacity and
the completion of any capital project or expansions.
Forward-looking information necessarily involve known and unknown
risks, including, without limitation, risks associated with general
economic conditions; adverse industry events; loss of markets;
future legislative and regulatory developments; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms; the
cannabis industry in Canada generally; the ability of
WeedMD to implement its business strategies; competition; crop
failure; and other risks.
Any forward-looking information speaks only as
of the date on which it is made, and, except as required by law,
WeedMD does not undertake any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for WeedMD to predict all such
factors. When considering this forward-looking information, readers
should keep in mind the risk factors and other cautionary
statements in WeedMD's Annual Information Form dated June 21, 2019
(the "AIF") and other disclosure documents of WeedMD filed with the
applicable Canadian securities regulatory authorities on SEDAR at
www.sedar.com. The risk factors and other factors noted in the AIF
and other disclosure documents could cause actual events or results
to differ materially from those described in any forward-looking
information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE
WeedMD (TSXV:WMD)
Historical Stock Chart
From Apr 2024 to May 2024
WeedMD (TSXV:WMD)
Historical Stock Chart
From May 2023 to May 2024