By Wendy Van Sickle
Columbus, Ohio, Sept. 4 – WeedMD Inc. said it agreed to issue C$10 million of 8.5% convertible debenture units due in 36 months in a private placement.
Mackie Research Capital Corp. is the bookrunner and a lead underwriter along with Haywood Securities Inc.
The underwriters agreed to purchase 10,000 of the convertible unsecured debenture units on a bought deal basis at a price of C$1,000 per convertible debenture, according to a company announcement.
Each convertible debenture unit will consist of one 8.5% unsecured convertible debenture and 625 common share purchase warrants, each good to purchase one share of the company at an exercise price of C$1.80 for up to 36 months.
If, at any time prior to the expiry of the warrants, the volume weighted average trading price of the common shares is greater than C$3.60 for 20 consecutive trading days, the company may, within 15 days of the occurrence of such event, deliver a notice to the holders of warrants accelerating the expiry date of the warrants to the date that is 30 days following the date of such notice.
The debentures will be convertible at a conversion price of C$1.60 per share, which is a 2.5% premium to the company’s closing price on Wednesday.
Proceeds will be used for working capital and for general corporate purposes.
WeedMD Inc. is the Toronto-based publicly traded parent company of WeedMD Rx Inc., a federally licensed producer and distributor of medical cannabis.
| Issuer: | WeedMD Inc.
|
| Issue: | Convertible debentures units for one debenture and 625 common share purchase warrants
|
| Amount: | C$10 million
|
| Maturity: | Three years
|
| Underwriters: | Haywood Securities Inc. and Mackie Research Capital Corp.
|
| Coupon: | 8.5%
|
| Price: | Par of C$1,000
|
| Yield: | 8.5%
|
| Conversion premium: | 2.5%
|
| Conversion price: | C$1.60
|
| Pricing date: | Sept. 4
|
| Settlement date: | Sept. 25
|
| Stock symbol: | Toronto: WMD
|
| Stock price: | C$1.56 at close on Sept. 4
|
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