WeedMD greenshoe ups 8.5% three-year convertibles to C$13.12 million

By Wendy Van Sickle

Columbus, Ohio, Sept. 25 – Underwriters for WeedMD Inc.’s bought-deal offering of 8.5% three-year convertible debenture units exercised their C$1,115,000 greenshoe, lifting the total deal size to C$13,115,000, according to a Wednesday news release.

The company announced an agreement for C$10 million of the convertibles on Sept. 4 and later upsized the issuance to C$12 million.

Mackie Research Capital Corp. is the bookrunner and a lead underwriter along with Haywood Securities Inc.

The underwriters agreed to purchase 12,000 of the convertible unsecured debenture units on a bought deal basis at a price of C$1,000 per convertible debenture, according to a past 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 Sept. 4.

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.

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