WeedMD Raises $17.25M Via Bought Deal Offering

Cannabis producer WeedMD Inc. WMD WDDMF has secured $17.25 million in financing through a bought deal short-form prospectus offering of its units.

The Toronto-based company disclosed Friday it's closing the offering under which it opted to sell roughly 36 million of its units at 48 cents per unit.

Each unit consists of one WeedMD's common share and one half of one common share purchase warrant allowing the purchase of a common share at 60 cents per share until March 12, 2023.

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

WeedMD said it plans to utilize the funds to boost its growth, including sales and marketing initiatives, the advancement of its operational capacities, and other product development initiatives.

According to its latest earnings report, the company generated CA$6.3 million in net sales during the third quarter, compared to CA$6.7 million in the corresponding period of 2019.

It also reported achieving 8% sequential growth in net revenue.

Meanwhile, WeedMD also made a series of management changes recently, by appointing its Executive Chairman George Scorsis to serve as interim CEO after Angelo Tsebelis stepped down in January. Simultaneously, the company appointed its chief legal officer Jason Alexander to the board of directors.

In December, WeedMD parted ways with Stephen Ng, who served as its chief commercial officer.