WeedMD Announces Termination Of Arrangement Agreement with Hiku Brands
July 10, 2018 (Source) — $10 Million Termination Fee Received and Keith Merker Appointed As Chief Executive Officer
WeedMD Inc. (TSX-V:WMD) (OTC:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical cannabis, announces that it has agreed with Hiku Brands Company Ltd. (“Hiku”) to terminate the previously announced Arrangement Agreement, dated April 19, 2018 (“Arrangement Agreement”). In connection with the termination of the Arrangement Agreement, the Company has received a $10 million termination fee. WeedMD is also pleased to announce that it has appointed Keith Merker, currently Chief Financial Officer, to the position of Chief Executive Officer, effective immediately.
“Over the past year, WeedMD has executed on our growth strategy and we continue moving forward with our strategic plan,” said Keith Merker, Chief Executive Officer of WeedMD. “In the past quarter, we’ve built out our management team, licensed and commissioned our state-of-the-art greenhouse expansion (link), signed a supply agreement with Shoppers Drug Mart (link) and secured a supply agreement with the Alberta Gaming, Liquor and Cannabis Commission (link). With an additional $10 million in non-dilutive capital and over $50 million in cash, all of our commitments are fully funded and we’re in a solid position financially and operationally to continue executing and delivering on all of our goals and objectives.”
With the appointment of Keith Merker as CEO of the Company, former CEO Bruce Dawson-Scully will take on an advisory role to ensure an orderly transition. WeedMD and its Board of Directors wishes to thank Bruce for his visionary insights into the seniors’ care market and his stalwart dedication to launching WeedMD from a private, early-stage Health Canada applicant to a public company with two operational facilities and an industry-leading medical platform.
The Company is also pleased to announce that Nichola Thompson will take on the role of interim CFO. Nichola currently serves as WeedMD’s Director of Finance and has previously held management positions in finance with Discovery Air, Deloitte & Touche and Siemens.
Additional management appointments will be announced in the coming weeks.
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WeedMD’s Annual Shareholder Meeting will take place as scheduled on Wednesday, July 11, 2018 at 10:00 a.m. (Toronto time) at Fogler, Rubinoff LLP, located at TD Centre North Tower, Suite 3000, 77 King Street, Toronto, Ontario.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis and oils under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The Company operates a 26,000 sq. ft. indoor facility in Aylmer, Ontario, and a second cultivation site at its greenhouse facility located in Strathroy, Ontario, representing 610,000 sq. ft. or 14 acres under glass. WeedMD has entered into supply agreements in addition to strategic relationships with established cannabis brands. WeedMD is focused on providing medical cannabis to the seniors’ markets in Canada through its proprietary seniors care program. It is dedicated to educating healthcare practitioners and furthering public understanding of the role that medical cannabis plays – including as it pertains to regulatory requirements, indications and potential side effects.
Cautionary Statement on Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD to implement its business strategies; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s Annual Information Form dated December 13, 2017 (the “AIF”) and other disclosure documents of WeedMD filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the AIF and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.
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