WEEDMD COMPLETES $15 MILLION BOUGHT DEAL PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

TORONTO, Ontario, November 2, 2017 — WeedMD Inc. (TSX VENTURE: WMD) (“WeedMD” or the “Company”), is pleased to announce that it has closed its previously announced bought deal private placement of 15,000 convertible unsecured debentures (the “Convertible Debentures”) of the Company at a price per Convertible Debenture of $1,000.00 for gross proceeds of $15,000,000 (the “Offering”) with a syndicate of underwriters led by Eight Capital and including Haywood Securities Inc. and Mackie Research Capital Corporation (together with Eight Capital, the “Underwriters”). The Convertible Debentures shall bear interest at a rate of 8.0% per annum from the date of issue, payable semi-annually in arrears on June 30 and December 31 of each year. The Convertible Debentures have a maturity date of 24 months from the closing of the Offering (the “Maturity Date”).

The Convertible Debentures will be convertible at the option of the holder into common shares of the Company (“Shares”) at any time prior to the close of business on the Maturity Date at a conversion price of $1.20 per Share (the “Conversion Price”). 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 (1) daily volume weighted average trading price of the Shares be greater than $2.00, for any 10 consecutive trading days, and (2) 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% 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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

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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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 date of trading of the Company’s common shares on the Exchange and final regulatory approvals, 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.


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



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