WeedMD closes deal for C$30M credit facility with LiUNA Pension Fund

WeedMD closes deal for C$30M credit facility with LiUNA Pension Fund

WeedMD Inc (CVE:WMD) (OTCQX:WDDMF) revealed on Wednesday that it has closed a definitive agreement for a C$30 million credit facility with an affiliate of the LiUNA Pension Fund of Central and Eastern Canada (LPF).

In a statement, the Toronto-based licensed producer and distributor of cannabis said the $30 million credit facility will mature in August 2022. The funds will boost the company’s working capital and provide WeedMD with “significant financial” muscle to drive commercial initiatives during its next stage of growth.

“With our facilities fully ramped up, licensed and engaging in the production of cannabis to a degree not seen before at WeedMD, we are officially in our next stage of growth and ready to execute our product strategy and expansion of our distribution networks,” said WeedMD CEO Angelo Tsebelis.

READ: WeedMD to bring its online medical product marketplaces under one roof and expand offering

“The added support from our partner and strategic investor, LiUNA Pension Fund, provides us with significant non-dilutive financing which will enhance our liquidity position and provide additional working capital to drive sales and generate sustainable profitability as we drive towards closing out our first year as a fully-integrated company alongside Starseed Medicinal.”

WeedMD has outlined its commercial plans for the adult-use market and is also bringing online medical product channels under a unified Starseed marketplace. It is on track to complete its full patient migration to its Starseed Medicinal online marketplace by early October.

Separately, WeedMD said its financials will now be filed on September 30, with a management hosted earnings call on October 1, at 10 am ET.

WeedMD owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility in Ontario as well as a fully-licensed 26,000 square feet processing facility, specializing in cannabis extraction in the Canadian province.

With the addition of Starseed, a medical-centric operator based in Bowmanville, Ontario, WeedMD has expanded its multi-channeled distribution strategy.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

Published at Wed, 30 Sep 2020 16:10:00 +0000-WeedMD closes deal for C$30M credit facility with LiUNA Pension Fund