WeedMD Established as First Licensed Producer in Shoppers Drug Mart’s Pilot Traceability Program for Medical Cannabis
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) announced announce that it is the first licensed producer (LP) to be included in Shoppers Drug Mart (“Shoppers”) and TruTrace Technologies’ (“TruTrace”, formerly BLOCKStrain Technology Corp.) medical cannabis verification pilot project (the “Pilot Project”).
As recently announced by Shoppers and TruTrace at the second annual World Cannabis Congress, the Pilot Project is built on TruTrace’s proprietary StrainSecure™ platform, which focuses on testing and verification to confirm the origin, authenticity and quality assurance of cannabis products. Link here to read.WeedMD has been a medical cannabis supplier to Shoppers since February 2019 and was the first licensed producer to partner with TruTrace and utilize the StrainSecure platform to register its genetics in late 2018.
“We registered 40 of our proprietary cannabis strains with TruTrace last October, recognizing the importance of strain validation as cannabis products advance through the medical and pharmaceutical channels,” said Keith Merker, CEO of WeedMD. “We’re proud to be the first LP to be included in Shoppers and TruTrace’s recently announced pilot project. Patients and their medical practitioners expect traceability and origin assurance of their cannabis strains as it goes a long way to building continued trust and accountability in our industry.”
About TruTrace’s StrainSecure Registration Program
Following the collection, sequencing and registration of the DNA of its cannabis strains, WeedMD became the first licensed producer in the world to incorporate a cannabis authenticity and tracking platform into its sales program. Read press release here.
Under the program, TruTrace’s team collects plant data and performs genomic sequencing in plant batches which are then registered in a blockchain-enabled database for intellectual property protection and strain validation. Known as the StrainSecure, all information gathered from the plants, including their molecular and chemical makeup, can be tracked via the program. Once approved, a quick response (QR) barcode specific to each cannabis batch can then reveal how it was cloned and cultivated, its cannabinoid content and more.
See full news release here: https://www.globenewswire.com/news-release/2019/06/18/1870279/0/en/WeedMD-Established-as-First-Licensed-Producer-in-Shoppers-Drug-Mart-s-Pilot-Traceability-Program-for-Medical-Cannabis.html
WeedMD Completes Planting on its 27-Acre Outdoor Grow
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) announced that it has completed the outdoor planting of more than 20,000 fully-rooted cannabis plants at its Strathroy, Ontario property. WeedMD is one of the first licensed producers in Canada to commence outdoor grow operations with its first harvest expected in October 2019. Video of Outdoor Grow Completed.
“With our outdoor grow now fully operational, WeedMD has one of the most compelling and low-cost cultivation platforms in Canada,” said Keith Merker, CEO, WeedMD. “Planting a variety of proprietary cannabis strains outdoors in June positions the Company to meet and exceed our production forecasts. WeedMD recently launched its adult-use brand Color Cannabis™, and with the introduction of new cannabis extract products in late 2019, we expect to have one of the largest, low-cost supplies of biomass to position ourselves vertically for the emerging extract market.”
WeedMD Outdoor Cultivation:
- Health Canada licence amendment secured on May 31, 2019
- Phase I includes the first 27 of 100 available acres at its Strathroy property
- Construction of fencing, security, irrigation and other required infrastructure completed on time and within a fully-funded $2 million budget
- 73 additional acres of production planned for Phase II in 2020 on the existing property
- Municipal approval secured
- Operational synergies with outdoor cultivation directly adjacent to WeedMD’s existing propagation operations within its licenced greenhouse facility
- All infrastructure and staffing resources exist onsite with a proven team dedicated and experienced in outdoor grow
- WeedMD’s cultivation team brings significant experience growing cannabis outdoors locally
- Selected strains proven to excel outdoors in southwestern Ontario
- Growing from rooted plants allows for higher yields, survival rates and consistency when compared to starting from seed
- Optimized plan with strains grouped with similar cultivation profiles in five planting zones
- Clones were rooted in organic material for over four weeks to reach acclimatization and optimal transplant size
WeedMD also recently announced the transition of its Aylmer, Ontario facility into a cannabis extraction and processing hub. Read extraction news here. With the large volume of high cannabinoid, low-cost input material that the outdoor harvest is expected to generate, the Company is positioned to process and market significant quantities of extracts and concentrates beginning in Q4 2019.
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company) a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce the launch of ColorTM Cannabis (“Color”). Color Cannabis products include a variety of strains, in multiple formats, developed with the same high-quality cannabis that consumers have come to expect from WeedMD. A premium brand that is exclusively available to distributors and select retailers across Canada, Color Cannabis products will be in stores and online as of mid-June 2019.
Color Cannabis was developed specifically for a diverse adult-use market that reflects the range in tastes and preferences of today’s cannabis consumers.
“We worked with globally-renowned agency Sid Lee to launch Color – our first adult-use brand,” said Brett Moon, SVP Sales and Marketing, WeedMD. “The brand is rooted on a simple insight: The world is no-longer seen in black and white. Color Cannabis aims to inspire our consumers to live life and experience cannabis in their own unique and personal way. With its punchy, memorable and uniquely-spelled brand name - coupled with stand-out colour schemes - consumers will appreciate the product inside this forward-thinking brand.”
In addition to premium dried flower, Color will launch new product formats in the coming months including pre-rolls, oils and gel capsules with further consumption formats in development. Color will offer up to 10 unique strains from WeedMD’s proprietary genetics collection that includes several signature strains - Pedro’s Sweet Sativa, Ghost Train Haze, White Shark, ACDC, Ultra Sour and Mango Haze.
“The goal of Color Cannabis is to capture the imagination, individuality and progressive nature of cannabis users. We don’t want to tell our customers how they are going to feel; we want them to experience Color for themselves,” said Keith Merker, CEO, WeedMD. “The launch of Color Cannabis is an important milestone for WeedMD as we expand our product portfolio, welcome new consumer segments and continue to provide Canadians with safe and reliable access to cannabis.”
With its combined indoor and outdoor production footprint of over 5.2M sq. ft. and projected total annual output of 150,000 kgs of cannabis in 2020, WeedMD will have ample supply for the rapidly-growing adult-use market and its growing medical business.
WeedMD Secures HC Approval for New Packaging Lines
WeedMD Inc.,a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that its fully-licensed Aylmer, Ontario facility has secured a Health Canada (“HC”) licence amendment to include an additional processing area equipped with semi-automated packaging lines. The newly-constructed processing room and packaging lines are installed, and currently undergoing final testing and calibration, with the expectation that they will be fully operational in early Q3-2019.
“The integration of automation into our packaging systems is a significant production milestone for WeedMD. We expect this automation to increase our speed to market and drive costs lower,” said Keith Merker, CEO of WeedMD. “This will ensure our finished products get to market competitively and efficiently with an expected positive impact on WeedMD’s margins beginning over the second half of this year.”
The Company’s 26,000 sq. ft. Aylmer facility is located on an expandable site of four acres of land. Together with the Company’s 158-acre Strathroy, Ontario facility, WeedMD’s production output is expected to yield more than 150,000 kgs per year as it reaches peak production in 2020.
WeedMD to Host First Quarter 2019 Earnings Conference Call
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis announced today that it expects to file its first quarter 2019 earnings after market close on Thursday May 30, 2019. The Company will host a conference call with management on Friday May 31, 2019 at 10:00 a.m. Eastern Time to report its Q1 2019 financial results and operational outlook. The call will be hosted by Keith Merker, CEO and Nichola Thompson, CFO of WeedMD.
Management will be available for analyst and media questions following opening remarks.
Conference Call Details:
|Date:||May 31, 2019|
|Time:||10:00 a.m. Eastern Time|
|Dial-in Number:||Canada/USA 1-800-319-4610. International Toll: +1-604-638-5340|
|Participants, please dial in and ask to join the WeedMD call.|
|Replay Dial-in:||Canada/USA 1-800-319-6413. International Toll: +1-604-638-9010|
|Replay Access Code: 3055#|
|Replay will be available after 12:00 p.m. Eastern Time, until June 30, 2019.|
See full news release here: https://www.weedmd.com/weedmd-to-host-first-quarter-2019-earnings-conference-call/
WeedMD Reports Fiscal Year 2018 Financial Results
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to report its financial results for the fourth quarter and fiscal year ending December 31, 2018.
WeedMD reports revenues of $8.2M in its second year of operations representing a year-over-year increase of 465%. Revenues were driven by a combination of increased cannabis sales to medical patients, supply agreements for Canada’s adult-use market in addition to the sale of wholesale cannabis and genetics to other licensed producers. The Company is well financed with a strong cash balance of $21.2M as of December 31, 2018.
|For the years ended December 31||2018||2017|
|Net and Comprehensive Loss||(895,128)||(8,805,222)|
|Adjusted Operating Loss*||(11,737,061)||(7,042,047)|
|Cash Used from Operations||(615,514)||(2,986,928)|
|Earnings (Loss) per Share (Basic and Fully Diluted)||(0.01)||(0.15)|
|As at||December 31, 2018||December 31, 2017|
|Cash and Cash Equivalents||21,223,641||24,695,152|
|*Adjusted Operating Loss is not a recognized measurement under IFRS and this data may not be comparable to data presented by other companies. Management believes Adjusted Operating Loss to be an important measure of the Company’s day-to-day operations, by excluding non-cash gains and losses and/or non-recurring items.|
Corporate Highlights Fiscal Year 2018
- closed a $34.5M bought deal equity financing
- entered into a joint venture with Phivida Holdings Inc. (CSE:VIDA) to manufacture and produce cannabis-infused beverages
- completed strategic partnership with TruTrace Technologies Inc. (TSXV:TTT) (formerly Blockstrain Technology Corp.)
- interlisted on OTCQX® Best Market and secured Depository Trust Company (“DTC”) eligibility and commenced trading under the ticker symbol (OTXQX:WDDMF)
- completed the retrofit and licensing of Phase I, initial 44,000 square feet of the Strathroy greenhouse in June 2018, with successful initial harvest in September 2018
- secured a Health Canada sales licence for its Strathroy greenhouse
- obtained approval from Health Canada for six additional 10,000 sq. ft. rooms at Strathroy greenhouse in December 2018, with first harvests beginning in March 2019
Sales, Marketing & Business Development Milestones
- commenced sales of cannabis oil products under Entourage and Axis brands
- registered WeedMD’s strains under a comprehensive cannabis genetics archiving platform as the pilot for TruTrace’s cannabis validation program
- executed supply arrangements with four provinces and completed first shipments to Ontario Cannabis Retail Corporation (“OCRC”) - operating as the Ontario Cannabis Store (“OCS”), Alberta Gaming, Liquor & Cannabis Commission (“AGLC”), British Columbia Liquor Distribution Branch (“BCLDB”), Nova Scotia Liquor Corporation (“NSLC”)
- exported our world-class cannabis genetics internationally to both Australia and Israel
- announced a retail sales distribution agreement with Lifford Cannabis Solutions, led by cannabis advocate, influencer and media personality Lisa Campbell, for British Columbia and Alberta
- entered into an agreement to become a medical cannabis supplier to Shoppers Drug Mart
- delivered first shipments of WeedMD-branded cannabis for the launch of adult-use market on October 17, 2018
Key Leadership Appointments
- appointed Keith Merker as CEO (formerly CFO)
- appointed Kevin McGovern, Chairman of McGovern Capital and founder of the beverage company SoBe, the fastest growing beverage company in the US as Board Director
- appointed Dr. Jonas Vanderzwan, a physician with more than 15 years of primary care experience as Medical Director and Chair of the Clinical Advisory Board
- appointed Michael Pesner, President of Hermitage Canada Finance Inc. and previously partner at KPMG for 26 years, as Board Director and Chair of Audit Committee
- expanded senior leadership team with the following hires in 2018:
° Nichola Thompson, CFO (interim CFO in 2018, affirmed as CFO April 2019)
° Josephine DesLauriers, Senior Vice President, People
° Brett Moon, Senior Vice President, Sales & Marketing
° Marianella delaBarrera, Vice President, Communications & Corporate Affairs
° Derek Pedro, Chief Cannabis Officer (announced in March 2019)
° Alex Sibilev, Vice President, Compliance and Global Regulatory Affairs (announced in March 2019)
- announced outdoor cannabis cultivation at its licensed 98-acre Strathroy Property
- submitted an amendment to existing licence to include initial Phase I, 25-acre outdoor grow
- entered into a $39M debt facility with BMO and purchased the 98-acre Strathroy property including indoor greenhouse, land and infrastructure
- purchased 60 acres of land directly adjacent to Strathroy property for outdoor cultivation for up to 110 acres or more than 100,000 kgs by 2020
- secured Health Canada Standard Processing Licence for Strathroy facility
- announced partnership with Pita Pit to launch Pioneer Cannabis Co. (“Pioneer”), a retail cannabis platform for Ontario and rest of Canada
- secured approval to supply cannabis to two further provinces - Manitoba Liquor & Lotteries Corporation (“MBLL”) and Saskatchewan Liquor & Gaming Authority (“SLGA”)
- Pioneer signed agreement with Ontario cannabis retail lottery winner and operator to open its first store in Burlington, Ontario
- expanded corporate footprint with offices in downtown Toronto and London, Ontario to drive commercial growth
Greenhouse Construction Timetable
The ramp up of the Strathroy facility continues on schedule as follows:
- as of December 31, 2018, the Company had secured cultivation licences for Phase 1 and Phase II, providing 110,000 sq. ft. of production space with 10 hybrid-greenhouse cultivation rooms, including clone and vegetation rooms, in full cultivation
- submitted an amendment to Strathroy licence for Phase III of its expansion, including licensing an additional 10 rooms, or 110,000 sq. ft. of production space, expecting to begin cultivation in June 2019
- anticipates completion of Phase IV construction of two large greenhouse rooms by end of Q2-2019, adding a further 308,000 sq. ft. of cultivation capacity and planning to plant and harvest in 2019
- on March 27, 2019, announced plans to launch outdoor cultivation on its 98-acre Strathroy property with plans to grow on 27 acres of workable land to be planted in June and harvested in Fall 2019 and an additional 23 acres in 2020
- on April 10, 2019, subsequently announced the purchase of an additional 60 acres of adjacent land bringing total planned outdoor cultivation space to more than 100 acres or 100,000 kgs in 2020
Strathroy Cultivation Expansion & 2019 Harvest Schedule
|Licence Issue Date
Space (Sq Ft)
|Measurement||# of Rooms||Licences|
|Phase 1||Hybrid GH||Complete||June 2018||44,000||Sq Ft||4||Cultivation, Sale|
|Phase 2||Hybrid GH||Complete||December 2018||66,000||Sq Ft||6||Cultivation, Sale|
|Phase 3||Hybrid GH||March 2019||June 2019 (expected)||110,000||Sq Ft||10||Amendment submitted|
|Phase 4||Standard GH||June 2019||Q3 2019 (expected)||308,000||Sq Ft||2||Amendment to existing licence|
|Licence Issue Date
Space (Sq Ft)
|Phase 1||Outdoor||May 2019||June 2019 (expected)||1,100,000||27||1||Amendment to existing licence|
|Phase 2||Outdoor||Q2 2020||Q2 2020 (expected)||3,200,000||73||3||Amendment to existing licence|
“Our team achieved a number of key milestones in 2018 as we rapidly built out and licensed our industry-leading production platform in record time to address the onset of the adult-use market. We signed key supply agreements with six provinces and added Shoppers Drug Mart to our distribution network. With our focus on operational excellence, we added key members to round out a formidable leadership team,” said Keith Merker, CEO of WeedMD. “Our solid base of operations and rapidly expanding production platforms sets the pace for completing our build out this year. With our greenhouse and outdoor platforms, WeedMD is well-positioned for very significant organic growth in 2019. We look forward to taking WeedMD to the next level with the launch of new brands, the roll out of new products, the build out of an international presence in addition to expanding our extraction and processing operations whilst exploring M&A opportunities to drive shareholder value.”
The Company’s financial statements and related management’s discussion and analysis for the period are available under the Company’s profile on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
WeedMD Affirms CFO and Expands Commercial Reach with Corporate Offices in Downtown Toronto and London
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company) a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that it is has confirmed the appointment of Nichola Thompson to the position of Chief Financial Officer. The Company also announced it is expanding its commercial footprint to include corporate offices in downtown Toronto, and London, Ontario – both of which will open in spring 2019.
“Nichola is a dynamic leader with over 15 years of finance leadership experience at Discovery Air, Deloitte & Touche and Siemens Canada. Since joining WeedMD in January 2018, she has become an integral member of our executive team, taking on many key initiatives including systems integration, financial reporting, capital allocation and most recently was the lead in securing and finalizing the $39M secured credit facility with BMO,” said Keith Merker, CEO, WeedMD. “Additionally, we are thrilled to announce our expanded footprint in Toronto and London as we continue to diversify and expand our commercial initiatives across Canada’s largest province which is expected to capture 65% of Canada’s legal cannabis market*.”
WeedMD Expands Commercial Footprint
WeedMD’s Toronto office located on Queen Street West opened its doors in April 2019 and houses the leaders and their teams in sales & marketing, business development, investor relations, communications and corporate affairs. The London office, located downtown off Richmond Street, is slated to open later this spring and will house the finance team and the administrative offices of the CEO and CFO.
WeedMD’s corporate offices will accommodate the company’s plan for future organizational growth and provide it with greater access to Canada’s business networks as well as a strong pool of corporate talent to drive commercial growth across the country.
See full news release here: https://www.globenewswire.com/news-release/2019/04/25/1809537/0/en/WeedMD-Affirms-CFO-and-Expands-Commercial-Reach-with-Corporate-Offices-in-Downtown-Toronto-and-London.html
Pioneer Cannabis, a Collaboration Between WeedMD and Pita Pit Canada, Signs with Ontario Cannabis Retail Operator
Pioneer Cannabis Corp. (“Pioneer Cannabis”), a national cannabis retail service provider, is pleased to announce it has signed a Master Cannabis Retail and Licensing Agreement (“Licensing Agreement”) with Ontario cannabis retail lottery winner Guruveer Sangha who will be the owner and operator of the first Pioneer Cannabis retail store located at 1200 Brant Street in Burlington, Ontario. Pioneer Cannabis is a collaboration between WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD”), a federally-licensed producer and distributor of medical-grade cannabis, and Pita Pit Canada (“Pita Pit”), a privately-owned Canadian fast casual franchise eatery with over 225 stores in Canada.
Mr. Sangha, an entrepreneur and lawyer from the Greater Toronto Area, recently secured a Retail Operator Licence (“ROL”) from the Alcohol and Gaming Commission of Ontario (“AGCO”). The 4,000 square foot Pioneer Cannabis Co. store is expected to open in late spring following final AGCO inspection and subsequent receipt of its Retail Store Authorization (“RSA”). Located next to the main arterial highways that border Oakville and Hamilton, the high-capacity area of Burlington and its surrounding areas has a combined population of over 1.7M.
“As a keen observer of the cannabis industry and a strong proponent of local economic growth through small business, I am delighted to be working with Pioneer Cannabis. Together we look forward to setting the standard for Canadians seeking safe stewardship of cannabis in a quality retail setting,” said Mr. Sangha.
“It is an important milestone for us to be able to support Guruveer’s establishment of Canada’s first Pioneer Cannabis store,” said Kristie Smith, President of Pioneer Cannabis. “He will be a driving force behind what we expect to be a true retail success as we launch a leading Canadian cannabis retail store that combines product, education and experience. We look forward to helping Guruveer realize his plan of opening additional Pioneer Cannabis stores across the GTA as soon as regulatory rules permit.”
“We are all stewards of cannabis and our pioneering spirit welcomes this retail endeavour between Pioneer and Guruveer,” said Keith Merker, CEO of WeedMD.
“Congratulations to Guruveer and Pioneer Cannabis. We’re pleased to see that the Burlington community and its surrounding area is in responsible hands,” said Chris Fountain, CEO of Pita Pit.
Pioneer Cannabis continues to pursue retail opportunities within Ontario and other provinces in accordance with prevailing cannabis retail regulations. For additional information and updates on store openings, visit the Pioneer website www.pioneercannabis.com
See full news release here: https://www.globenewswire.com/news-release/2019/04/17/1805326/0/en/Pioneer-Cannabis-a-Collaboration-Between-WeedMD-and-Pita-Pit-Canada-Signs-with-Ontario-Cannabis-Retail-Operator.html
WeedMD Secures Health Canada Standard Processing Licence for its State-of-the-Art Strathroy Facility
WeedMD Inc. (TSX-V: WMD) (OTCQX: WDDMF) (FSE: 4WE)(“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce it has received a Health Canada Standard Processing Licence (“Processing Licence”) for its 158-acre Strathroy facility. This marks an important step in the Company’s ability to scale up production, packaging and distribution of cannabis products from its large scale production site.
“Our recently announced outdoor production expansion combined with this Processing Licence positions WeedMD with the ability to fully execute on its plans to scale up our downstream capacity in packaging and distribution,” said Keith Merker, CEO of WeedMD. “This is another critical milestone that will enable WeedMD to address the current supply bottlenecks being experienced across the Canadian cannabis industry.”
As previously announced, WeedMD plans to increase its total yield to more than 150,000 kgs of quality-driven greenhouse and outdoor cultivation – all of which is expected to be at full capacity in 2020. The Company has applied to Health Canada for an amendment to its Strathroy licence to expand beyond its greenhouse cultivation with an initial 25-acre, low-cost, outdoor grow operation in 2019. Outdoor grow video here. An additional 75 acres of outdoor grow is planned to come online in Phase II in 2020. Link to release here.
See full news release here: https://www.globenewswire.com/news-release/2019/04/15/1803873/0/en/WeedMD-Secures-Health-Canada-Standard-Processing-Licence-for-its-State-of-the-Art-Strathroy-Facility.html
WeedMD Acquires 60 Acres of Neighbouring Land to Expand its Outdoor Cannabis Footprint
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE)(“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce it has closed on the purchase of an additional 60 acres of prime land located directly adjacent to its 98-acre Strathroy property. WeedMD’s outdoor grow now has the potential to increase to more than 100 acres. As previously announced, the Company has applied to Health Canada for an amendment to its Strathroy licence to expand beyond its greenhouse cultivation with an initial 25-acre, low-cost, outdoor grow operation in 2019. Link to release here. An additional 25 acres had previously been planned to come online as Phase II in 2020. With today’s announcement, Phase II will increase to 75 acres for an overall outdoor cultivation of 100 acres online by 2020.
Pending Health Canada approval, WeedMD’s outdoor grow is expected to increase its total yield to more than 100,000 kgs of cannabis in 2020 and more than 150,000 kgs when combined with its greenhouse cultivation. Outdoor grow video here.
“With the amalgamation of this property and our existing licensed footprint, we now own more than 160 acres of contiguous land in Strathroy – that’s 100 adjoining acres of prime workable agricultural land for outdoor cultivation. WeedMD is well-positioned to be the industry leader setting the benchmark for low-cost, scalable, quality-driven outdoor production in Canada,” said Keith Merker, CEO of WeedMD. “As one of the first out of the gate, our experienced cultivation team has started onsite preparedness with ready-tested genetics and clones being propagated at our state-of-the-art greenhouse. The ability to produce consistent strains for dried flower, extracts and concentrates at a fraction of the cost of other production platforms will give us a strategic edge as we expand our product lines and commercial reach with our first outdoor harvest expected in fall 2019.”
“Our Strathroy property was strategically selected in 2017 for its modern greenhouse and future growth potential. The vast outdoor property has full sunlight, an abundance of air flow, a protective buffer zone of trees and proximity to our infrastructure and propagation operations at the greenhouse. We have now capitalized on the opportunity to expand across perfectly-maintained adjacent lands already primed for outdoor cultivation - all of which can now be easily folded into our licensed property,” said Derek Pedro, Chief Cannabis Officer of WeedMD. “With the purchase of the adjacent 60 acres of land for outdoor grow, we’re well on our way to rapidly scaling production, with Phase II bringing us to full capacity in 2020.”
WeedMD Enters Into $39 Million Debt Facility with BMO and Acquires 98-acre Licensed Strathroy Property
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE)(“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that it has entered into a credit facility with Bank of Montreal (“BMO”). Under the terms of the credit facility, BMO will provide WeedMD up to $39 million of secured debt financing at a rate of interest that is expected to average in the low-to-high 5% per annum range over a three-year term.
The facility consists of a $33.1 million term loan, a $3.0 million equipment term loan and a $3.0 million revolving credit facility (collectively, the “Loans”), all of which mature in 2022. WeedMD may, at its discretion, repay the balance of the Loans without penalty at any time during the term.
Concurrently, WeedMD has exercised its option to purchase the Health Canada-licensed, 98-acre Strathroy property (“Strathroy”) from Perfect Pick Farms (“Perfect Pick”). The Strathroy purchase includes the licensed 610,000 sq. ft. state-of-the-art hybrid-greenhouse, more than 100,000 sq. ft. of ancillary structures and all other infrastructure and equipment as well the 50 acres of land upon which the Company intends to cultivate outdoor cannabis. Link to outdoor cultivation release here.
“Securing BMO’s support at this exciting juncture in WeedMD’s growth provides market validation in our ability to continue to execute our strategic plan with non-dilutive financing,” said Keith Merker, CEO of WeedMD. “In 2018, it took us just six months to retrofit, license and bring the first phase of our state-of-the-art greenhouse online. Less than three months later, we took down our first harvests with very compelling yields and quality. We’ve since continued to expand our licensed footprint and operations across the greenhouse and have recently announced our plans for outdoor cannabis cultivation onsite, which we expect to double our production potential with a low-cost scalable expansion.”
The interest rate for the Loans is a set margin over the Canadian dollar prime rate or a bankers’ acceptance of appropriate term. Based on the current Canadian dollar prime rate, the interest payable is expected to be in the low to high 5% per annum range over the term of the Loans. The credit facility is secured by the Company and its subsidiaries, including WeedMD's production facilities in Strathroy, Ontario and Aylmer, Ontario, and contains customary financial and restrictive covenants. Additional details on the credit facility can be found in the Company’s documents which are available under the Company’s profile on SEDAR at www.sedar.com.
WeedMD has acquired a 100% interest in the Strathroy property from Perfect Pick for the balance due under its option agreement of $22.6 million, of which $17.6 million was paid in cash and $5 million was satisfied by the issuance of 2.5 million units ("Units") in the capital of WeedMD.
Each Unit was comprised of one WeedMD common share at a price of $2.00 and one-quarter (1/4) of a warrant (for 625,000 total warrants), with each whole warrant exercisable into a WeedMD common share at an exercise price of $2.50 per share for five years.
See full news release here: https://www.globenewswire.com/news-release/2019/04/01/1790507/0/en/WeedMD-Enters-Into-39-Million-Debt-Facility-with-BMO-and-Acquires-98-acre-Licensed-Strathroy-Property.html
WeedMD to Expand Production with Outdoor Cannabis Cultivation at its Licensed 98-Acre Strathroy Property
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE)(“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce it has applied for an amendment to its Strathroy licence to expand beyond its existing cultivation with an initial 25-acre, large-scale, low-cost, outdoor cannabis grow operation with the capacity to increase up to 50 acres. The Company confirms it has secured the support of the Municipality of Strathroy-Caradoc for its planned outdoor grow expected to be completed in two phases. In 2019, Phase I will be brought online, representing more than 25 acres of production, with an additional 25 acres planned for Phase II in 2020. Pending Health Canada approval, the outdoor grow is expected to increase WeedMD’s total production footprint to upwards of 2.7 million square feet with the potential to yield over 100,000 kgs of cannabis in 2020 together with greenhouse cultivation.
WeedMD’s outdoor grow will be situated on organically-certified* soil on its 98-acre Strathroy property which also houses the Company’s 610,000 sq. ft. modern greenhouse facility. Outdoor grow video here.
“Our municipality is proudly home to a thriving agricultural community which has long supported our local businesses and we’re pleased that WeedMD continues to expand its local footprint in a progressive and economically-viable manner,” said Mayor Joanne Vanderheyden, Municipality of Strathroy-Caradoc. “We welcome and wholly support its push for outdoor expansion along with the job opportunities, sustainable cultivation and community engagement it will bring for the continued long-term growth of our municipality.”
“In November 2017, we initially selected this 98-acre property in Strathroy because of its expansion potential, which included low-cost scalable outdoor production that is strategically located alongside our licensed state-of-the-art greenhouse propagation operations. WeedMD, with its proven cultivation team, genetics bank and propagation capabilities, has positioned itself as a first-mover in the industry,” said Keith Merker, CEO of WeedMD. “With our outdoor grow site, we will continue producing cannabis products at an expected lower cost, in a supportive municipality that will complement our existing robust production platform with our first outdoor harvest expected in fall 2019.”
“With the anticipated demand for extracted products and cannabis concentrates, our experienced cultivation team and proven outdoor grow genetics are expected to generate high yields at very low cost. The addition of an outdoor grow will ensure that WeedMD is positioned to meet the needs of its patients and customers in the ever-expanding cannabis market,” said Derek Pedro, Chief Cannabis Officer of WeedMD. “Our methodologies and standardized innovative practices have been derived from more than 15 years of outdoor growing experience under Canada’s legal cannabis programs. With cannabis plants being readied for transplant in June 2019, WeedMD is optimally positioned to rapidly scale production and is already being recognized as an industry-leader and expert in outdoor cultivation.”
Highlights of WeedMD’s Large-Scale, Low-Cost Outdoor Expansion
- Phase I of the outdoor grow is more than 25 acres. Capable of producing more than 25,000 kgs of cannabis, WeedMD has already commenced retrofitting the highly-secured space and its first outdoor harvest is expected in fall 2019.
- Phase II will bring the total outdoor grow to 50 acres in 2020. Increases WeedMD’s total production footprint to over 2.7 million square feet with the potential to yield more than 100,000 kgs of cannabis in 2020.
- Industry-leading production costs. With the cultivation of outdoor cannabis, WeedMD expects its production costs to be amongst the lowest in the industry.
- Experienced leadership team with leading methodologies to revolutionize outdoor cultivation. WeedMD’s skilled cultivation team is led by industry pioneer and Chief Cannabis Officer Derek Pedro who together have more than 40 years of combined outdoor, indoor and greenhouse cultivation experience.
- Outdoor grow complements WeedMD’s greenhouse cultivation in Strathroy. With the outdoor grow adjacent to its state-of-the-art 610,000 sq. ft. hybrid greenhouse facility in Strathroy, the Company can utilize existing, on-site storage and packaging as per Health Canada regulations. Also, WeedMD will leverage its existing site for its propagation, genetics and clones ahead of the outdoor growing season to take into account the longer growing period for its proprietary outdoor genetics.
- Sustainable growing practices. Cultivated in a natural environment using sustainable growing practices such as direct sunlight, pre-tested live soil that is certified-organic*, onsite water reservoir, appropriate ventilation, natural bio-security practices and state-of-the-art irrigation mechanisms already in place, Strathroy is positioned to become the standard of excellence for outdoor cannabis cultivation.
See full news release here: https://www.globenewswire.com/news-release/2019/03/27/1773821/0/en/WeedMD-to-Expand-Production-with-Outdoor-Cannabis-Cultivation-at-its-Licensed-98-Acre-Strathroy-Property.html
WeedMD Appoints Industry Pioneer to Chief Cannabis Officer
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE)(“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce strategic leadership appointments to further strengthen its team and advance its platform in both domestic and international markets.
Industry pioneer Derek Pedro is appointed to the newly-created position of Chief Cannabis Officer – a groundbreaking post that will cement WeedMD’s footing as a premier licensed cultivator rooted in best-in-class cultivation practices. To further advance those initiatives, veteran compliance expert Dr. Alex Sibilev, is appointed to Vice President, Quality Assurance & Global Regulatory Compliance.
“As one of the key architects of WeedMD’s robust cultivation framework, Derek has been a long-time advisor and production partner to the Company and is recognized nationally as both an industry pioneer and the first cultivator to grow in a hybridized greenhouse setting. He was also one of the original patient advocates that lobbied for legal access to cannabis and we are extremely proud to announce his official appointment to this unique position – a timely announcement as we look to optimize our expanding operations,” said Keith Merker, CEO of WeedMD. “Additionally, we are further strengthening our team with the addition of Alex, another industry veteran recognized as a leading compliance expert. He brings a deep knowledge and scope that will strengthen both our domestic operations as well as our development in international markets.”
With its state-of-the-art greenhouse facility in Strathroy, Ontario coming fully online in 2019. WeedMD is focused on optimizing its work sites and teams to support the Company’s drive for growth.
More about the appointments
Derek Pedro, Chief Cannabis Officer. With over 25 years of design, cultivation and production experience, Derek is a long-time advisor to the WeedMD team and has been instrumental in the success of the Company over the last five years. An invaluable asset in the development and design of the Company’s state-of-the-art hybrid greenhouse in Strathroy, ON., which is efficiently growing indoor-quality cannabis, he is an industry pioneer and innovator with a long history of cultivating in all types of growing environments including indoor and outdoor operations. Over the past few years, Derek has introduced over 55 live cannabis strains into Canada’s legal cannabis cultivation system and is recognized for setting up the first truly-hybridized greenhouse in 2007 under the Marijuana Medical Access Regulations (MMAR).
Dr. Alexandre Sibilev, Vice-President, Quality Assurance & Global Regulatory Compliance. Alex brings over 30 years of pharmaceutical experience, regulatory affairs, and compliance oversight and is highly regarded in the cannabis industry as one of the premier specialists in navigating regulatory compliance. A trained pharmacist, Alex holds a PhD in Pharmaceutical Sciences from Sechenov First Moscow Institute of Medicine. He was instrumental in advancing international regulatory processes - specifically obtaining Good Manufacturing Practices (GMP) certification in pharmaceutical ventures, the natural health products industry, and cannabis for medical use. Most recently, he led the regulatory compliance on behalf of another major Canadian licensed producer.
WeedMD to Supply Cannabis to the Private Retail Sector in Province of Saskatchewan
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that the Saskatchewan Liquor and Gaming Authority (SLGA) has authorized the Company to supply cannabis directly to the province’s retail and wholesale markets.
“As our robust production platform continues to expand, we are excited to announce the further expansion of our distribution network along with it,” said Brett Moon, SVP, Sales and Marketing at WeedMD. “Saskatchewan represents the sixth province in which Canadians will be able to purchase WeedMD products and has a unique model that allows both the sale and distribution of cannabis by the private sector. We are thrilled to be creating partnerships directly within this market which forms another component of WeedMD's diverse distribution network, providing premium-branded products to both the government and private sectors across Canada and further positioning the Company for emerging global markets.”
WeedMD’s expansion into its large-scale, fully-funded modern greenhouse will be the main supply base for its medical cannabis patients and rapidly-growing recreational market. The Company is on track to increase its cultivation platform to more than 550,000 sq. ft. in first half of 2019.
In addition to Saskatchewan, WeedMD’s premium-quality cannabis products are currently available in Ontario, Nova Scotia, Alberta and British Columbia, and will be shortly available in Manitoba. With all six provinces, WeedMD is able to reach about 70% of Canada’s projected recreational market. The Company is in continued discussions with the remaining provinces, territories and private retail outlets. Recently, WeedMD completed the first shipment of medical cannabis products to Shoppers Drug Mart and our products are now available for sale on its newly-launched e-commerce site.
WeedMD Medical Cannabis Now Available On Shoppers Drug Mart’s E-commerce Site
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that it has completed its first shipment of medical cannabis products to Shoppers Drug Mart (“Shoppers Drug Mart”). WeedMD-branded products are now available for sale on the pharmacy’s newly-launched medical cannabis sales website: cannabis.shoppersdrugmart.ca.
“We continue to expand the accessibility of our products to medical patients in Canada and congratulate Shoppers Drug Mart - one of the most trusted names in pharmacy and patient support services – on the Ontario launch of its online sales platform and cannabis education program,” said Keith Merker, CEO at WeedMD. “As a committed medical cannabis supplier and educator, we are proud to work with Shoppers Drug Mart to expand the reach of our products to patients looking for safe, consistent, quality cannabis from a trusted source.”
WeedMD’s expansion into its large-scale, fully-funded modern greenhouse will be the main supply base for its medical cannabis patients as well as for the rapidly-growing recreational market. The Company is on track to increase its cultivation platform to more than 550,000 sq. ft. in the first half of 2019.
WeedMD and BLOCKStrain Complete Industry’s First Cannabis Validation Testing Program
WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, and BLOCKStrain (TSX:V.DNAX, OTCQB:BKKSF, Forum) (“Blockstrain”), are pleased to announce that they have completed a ‘first-of-its-kind’ cannabis strain validation registration program - a testing and verification process that will confirm cannabis strains are as purchased.
Strain validation will play an important role as cannabis products advance through the medical, retail and pharmaceutical channels. Following the collection, sequencing and registration of plant DNA from its Aylmer, Ontario facility, WeedMD becomes the first licensed producer in the world to incorporate a cannabis strain authenticity and tracking platform into its sales program.
“We congratulate all the teams that worked on this ground-breaking achievement. With the completion of genetic testing, consumers will appreciate the traceability and origin assurance of the WeedMD cannabis that they are purchasing,” said Keith Merker, CEO of WeedMD. “We now have a total of 40 active cannabis strains from our genetics bank that hold the ‘BLOCKStrain Certificate of Authenticity’ and are able to be cross-referenced as verifiable strains in BLOCKStrain’s database - from genome to sale.”
“For years, consumers have been purchasing cannabis products with very little information on what exactly is being purchased, but they can now trace strain origin and their CBD and/or THC content, along with other pertinent information,” said Robert Galarza, CEO of BLOCKStrain. “With the unique technology of the Master Genome Strain and Clone Registration Program, producers can now guarantee their strains and provide customers with product assuredness.”