Sunday, October 19, 2025

WeedMD Closes Over Subscribed Financing for $13.1 Million

WeedMD Inc (TSXV: WMD) announced this morning the closing of its $12 million bought deal convertible debenture financing that was announced earlier this month. The financing saw a portion of the over allotment option exercised as well, bringing the total funds raised to $13.1 million.

The bought deal financing was originally expected to be $10 million, however demand resulted in the firm upsizing the financing the following day and providing an over allotment of up to $1.8 million to the underwriters. The financing was by Mackie Research Capital.

Under the offering, each convertible debenture unit bears interest at a rate of 8.5% per annum for a term of 36 months and comes with 625 share purchase warrants. Each warrant has an exercise price of $1.80 per share, and expires September 25, 2022.

The convertible units can be converted to common shares of WeedMD at a price per share of $1.60. A provision exists for forced acceleration if the volume weighted price per share exceeds $3.20 for twenty consecutive trading days. A similar provision exists for the warrants, at a VWAP of $3.60.

Proceeds from the offering are to be utilized for the further retrofitting of the Aylmer Facility, known as CX Industries, which will include acquiring additional extraction equipment. The funding will also be utilized towards the construction of the outdoor processing facility at Strathroy, working capital, and general corporate purposes.

The convertible debentures and associated warrants are anticipated to be listed on the TSX Venture Exchange under the symbols “WMD.DB” and “WMD.WT” respectively.


FULL DISCLOSURE: WeedMD is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover WeedMD on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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