TORONTO, March 12, 2021 (GLOBE NEWSWIRE) —

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 it has closed its previously announced bought deal short-form prospectus offering of 35,937,500 units (“

Units

”) at a price of $0.48 per Unit for aggregate gross proceeds of $17,250,000, including full exercise of the over-allotment (the “

Offering

”). The syndicate of underwriters was led by Eight Capital and Canaccord Genuity Corp. as the co-lead underwriters, along with INFOR Financial Inc. (collectively, the “

Underwriters

”). 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.

Each Unit is comprised 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 $0.60 per Common Share until March 12, 2023. If after the one-year anniversary of the closing of the Offering the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange (“

TSXV

”) is equal to or greater than $0.96 per Common Share for the preceding 10 consecutive trading days, the Company shall have the right to accelerate the expiry date of the Warrants to a date that is 30 trading days following the date of the Company issues a press release disclosing such acceleration.

The TSXV has conditionally approved the listing of: (i) the Common Shares and the Warrants issued pursuant to the Offering, (ii) the Common Shares issuable upon exercise of the Warrants, and (iii) the Common Shares and Warrants forming part of the compensation units issued to the Underwriters in connection with the Offering. Listing will be subject to the Company fulfilling all of the listing requirements of the TSXV. The Company expects the Warrants to commence trading on or about March 19, 2021.

The Company 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.

The securities mentioned herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States, in any province or territory of Canada or in any other jurisdiction. There shall be no sale of the securities in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or sale would be unlawful.

About WeedMD Inc.

WeedMD Inc. is the publicly traded parent company of WeedMD RX Inc. and Starseed Medicinal Inc., licence holders producing and distributing 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, ON as well as a fully-licensed 26,000 sq. ft. Aylmer, ON processing facility, specializing in cannabis extraction. With the addition of Starseed, a medical-centric operator, WeedMD has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements WeedMD’s direct sales to medical patients. The Company maintains strategic relationships in the seniors’ market and supply agreements with Shoppers Drug Mart as well, as seven provincial distribution agencies where adult-use brands Color Cannabis and Saturday are sold.

Follow WeedMD and its brands on



LinkedIn

Twitter:



WeedMD



,



Color Cannabis



,



Saturday Cannabis



&



Starseed

Instagram:



WeedMD



,




Color Cannabis



,





Saturday Cannabis




&




Starseed

For further information, please contact:

For Investor Enquiries:


Valter Pinto

Managing Director

KCSA Strategic Communications

1-212-896-1254


[email protected]

For Media Enquiries:


Marianella delaBarrera

VP, Communications & Corporate Affairs

416-897-6644


[email protected]

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. Forward-looking information in this press release includes, but is not limited to, statements with respect to the use of proceeds of the Offering and the listing of the Warrants.

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; the COVID-19 pandemic; 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 disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at



www.sedar.com



. The risk factors and other factors noted in the 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