WeedMD Inc. WMD WDDMF said Monday it completed its previously announced acquisition of medically-oriented cannabis company Starseed Holdings Inc.
At the same time, WeedMD has finalized a private placement of subscription receipts with the LiUNA Pension Fund of Central and Eastern Canada for aggregate gross proceeds of $25 million. The price per subscription receipt was set to $1.0832, and each receipt will be immediately exchangeable into company’s one common share.
Upon the closing, Starseed’s management team will join WeedMd’s senior leadership team: Keith Merker will maintain his role of CEO, Angelo Tsebleis will become President of WeedMD, Nichola Thompson will keep her role as CFO, Stephen Ng will be appointed as CSO of WeedMD, and Dr. Peter Blecher will take upon the role of CMO of WeedMD.
Additionally, the company board of directors now has four representatives from WeedMD, and three form Starseed, and George Scorsis is hired as an Executive Chair of the board, as he was previously an executive advisor to the WeedMD’s board, and leadership team.
Upon the closing of the deal, WeedMD obtained 100% of the issued and outstanding Starseed’s commons shares, and Starseed’s shareholder attained around 71.8 million WeedMD’s shares.
“We officially welcome the Starseed team to the WeedMD family which together will kick-off 2020 as a very compelling, vertically-integrated cannabis company that will execute across the entire value chain,” Keith Merker, CEO of WeedMD, said in a statement.
“Starseed’s unique medical distribution platform complements WeedMD’s high-quality cultivation and processing platform. This partnership, along with the $25 million strategic equity investment by LPF, positions WeedMD and its shareholders with a fortified balance sheet and one of the most captive medical cannabis businesses in the country as we enter the new year.”
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